ENG Grants Exclusive Small-Scale GTL Marketing Rights To OiLSERV- Covering Iraq, Libya, Algeria, And The UAE
ENG (NASDAQ:ENG) announced a significant marketing and technology agreement with OiLSERV FZCO, granting exclusive rights to market ENG's small-scale gas to liquids (GTL) technology for ten years in Iraq, Libya, Algeria, and the UAE. OiLSERV, an established service provider in the region, will leverage this technology to address gas flaring issues, with over 143 billion cubic meters flared globally each year. ENG anticipates delivering its first GTL plant in six to eight months, with a production rate of approximately one plant per week.
- ENG signed a 10-year agreement with OiLSERV for exclusive marketing rights of its GTL technology in four key markets.
- OiLSERV's established presence in the region enhances ENG's market reach and potential for growth.
- ENG expects to deliver its first GTL plant in 6-8 months, with production scaling to one plant per week.
- ENG is currently facing long lead times for certain components, which could delay future projects.
HOUSTON, TX / ACCESSWIRE / July 21, 2022 / ENG (NASDAQ:ENG), a leading provider of innovative project delivery solutions for the energy industry, today announced the signing of a marketing and technology agreement with OiLSERV FZCO, a prominent integrated oilfield services company in the Middle East and North Africa (MENA) region and headquartered in Dubai. Under the agreement, OiLSERV has paid ENG an undisclosed amount for the exclusive rights to market ENG's proprietary small-scale gas to liquids ("GTL") technology for a period of ten years in the countries of Iraq, Libya, Algeria, and the United Arab Emirates.
OiLSERV has a well-established operational presence in these countries for its provision of subsurface and surface services through its Production & Energy Solutions business line to all of the international and national oil and gas companies in the region. Most of these companies currently have high priority initiatives underway aimed at reducing the amount of gas flared during oil production. The proprietary modular GTL plants supplied by ENG will enhance OiLSERV's ability to support these initiatives.
"Globally, over 143 billion cubic meters (or "BCM") of gas is flared on an annual basis from flare stacks and production facilities, which is equivalent to over 382 million metric tons of CO2 per year according to the World Bank" said Mark A. Hess, CEO of ENG. "Iraq is the second largest producer of flare gas in the world with over 17 BCM of flare gas produced annually over the last 10 years. Therefore, I am very excited to partner with OiLSERV as they are a highly regarded and proven service provider in these strategic markets. We firmly believe that our new relationship with OiLSERV will prove to be a great success for both parties, and accelerate ENG's growth in supplying GTL technology to this major energy producing region."
Donal J. Dempsey, Executive Vice President of Production and Energy Solutions for OiLSERV stated: "The MENA region is responsible for over
The gliding plasma GTL technology, acquired by ENG in a transaction announced on May 19th of this year, requires no pre-treatment or separation of feed gas, accommodates condensates and is low power consuming, thus providing an economical and attractive alternative to gas flaring by converting the gas to synthetic crude oil, synthetic diesel or synthetic naphtha which can be fed into existing production units or sold. ENG's designs focus on standardized, "truckable" modules, currently in two sizes of 50 and 100 barrels per day requiring approximately 500,000 to 1 million standard cubic feet (14,200 to 28,300 standard cubic meters) of flare gas per day to operate at those volumes. ENG's GTL technology is also a scalable system for larger flare and stranded gas sites.
Although currently encountering long lead times for certain components, ENG anticipates delivering its first GTL plant in six to eight months and, when in production, supplying plants at a rate of about one per week. The plants would be built in a controlled shop environment and delivered to the flare or gas feed site for quick installation.
About ENG
ENG (NASDAQ:ENG) is a leading provider of complete project solutions for renewable and traditional energy throughout the United States and internationally. ENG operates through two business segments: Commercial and Government Services. The Commercial segment provides engineering, design, fabrication, construction and integration of automated control systems as a complete packaged solution for its clients. The Government Services segment provides engineering, design, installation, operations, and maintenance of various government, public sector, and international facilities, specializing in turnkey automation and instrumentation systems for the U.S. Defense industry worldwide. Further information about the Company and its businesses is available at www.englobal.com.
About OiLSERV
OiLSERV is a leading regional, integrated oilfield services company in the Middle East and North Africa. Headquartered in Dubai and operating offices across the Middle East and North Africa, OiLSERV has grown steadily since 2006 to become the leading independent oilfield services provider in the region, with the largest fleet of equipment, number of people and range of services. The company's clients benefit from its unrivalled understanding of their technical challenges and unique environmental, geological and cultural conditions that exist within OiLSERV's home markets. By merging its invaluable local experience with a highly skilled and motivated global team, the latest technologies and quality-driven processes, the company has succeeded in establishing a reputation for delivering customized and competitive solutions regardless of the conditions.
Safe Harbor for Forward-Looking Statements
The statements above regarding the Company's expectations, including those relating to its future results, its operations and certain other matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties. For a discussion of risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ENG's filings with the Securities and Exchange Commission, including the Company's most recent reports on Form 10-K and 10-Q, and other SEC filings.
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SOURCE: ENGlobal
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FAQ
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