OTR to Form Joint Venture in Kuwait

Source: www.gulfoilandgas.com 10/20/2014, Location: Middle East

Oil Tech Royalties Inc. ("OTR"), has signed a non-binding letter of intent with Abdulaziz Abdulmohsin Al-Rashed Sons. W.L.L. ("AlL Rashed"), one of largest and most respected private commercial enterprises in Kuwait to form a joint venture ("JV") in order to promote and commercialise OTR's technology in the State of Kuwait. TXO has a 30% shareholding in OTR.

Oil Tech Royalties Inc ("OTR") is a joint venture company with a licence to commercialise a proprietary acoustic flow reactor valve. OTR will provide their proprietary technology and technical know-how for the pilot tests to establish the efficacy of the technology in its potential use at power generation facilities and for use in the treatment of heavy oil in Kuwait. Al Rashed will assist in providing the introduction of OTR to potential customers and in identifying locations and resources required for the test.

Al Rashed have extensive operations in the power generation sector and are a supplier to the Kuwait Oil Company. Kuwait's Al Doha powerplant (2400 MW), which powers half the country, runs on heavy fuel oil.

The OTR technology has commercial application to the reduction of pour point and other properties in heavy oil (at a substantially reduced cost), and is used to create fuel emulsions from heavy fuel oil to feed power generation plant. The technology that OTR is looking to use in Kuwait and other Gulf States has been independently proven by the IP holders, which are independently commercialising the technology with success in Latin America.

Whilst there can be no certainty of a successful conclusion to the pilot tests, in the event the results are positive, the parties would look to complete a definitive JV agreement following the conclusion of testing.

In June 2013 the Kuwait Oil Company announced plans to start drilling for heavy oil so that the Gulf state can produce up to 60,000 barrels per day (bpd) of heavy oil by 2017, with nearly 1,200 wells being drilled in total to produce potentially 270,000 bpd by 2030. Kuwait has a light crude oil production capacity of 3 million barrels per day.


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Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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