Singapore commodity firm Olam International said on Monday India's Tata Chemicals will invest $290 million to buy a 25% stake in its joint venture project with the government of Gabon to set up a urea manufacturing project.

The $1.3 billion ammonia-urea fertilizer complex in Gabon was set up through a joint venture between Olam and Gabon's government in which Olam had an 80% stake and the latter had 20%, it said in a statement.

Olam's share of the joint venture will now be reduced to around 63%, and the Gabon government's share to 12 percent, the statement said.