CET signs amendment with Saudi Aramco to strengthen In-pipe Compressor contract
Corac Group plc is pleased to announce that its subsidiary Corac Energy Technologies (CET) has signed an amendment to its contract with Aramco Overseas Company BV, a subsidiary of Saudi Aramco, for a revised scope of work to develop an In-pipe Gas Compressor (IGC). This amendment follows a technical review that was completed earlier in the year, as announced at the time of the Group's half year results in September.
As a result of this amendment the total contract is now valued in excess of £1 million and will enable CET to support the design, development, build and test stages of this pioneering system for the energy industry.
The contract amendment follows extensive joint reviews with the Aramco team in the Kingdom of Saudi Arabia of the available wells and the technical options to provide compact compression at the wellhead. The system will be designed to satisfy a range of well conditions with several hundred candidate wells, to provide potentially substantial returns to CET. Detail design and build of the revised system will begin immediately with field testing anticipated in early 2015.
Corac Group Chief Executive Phil Cartmell commented:
"This is a big step in the wellhead compression programme as it confirms the strategic route forward and adds a further financial contribution. We now enter a staged development project with our partners in the Kingdom of Saudi Arabia, focused on delivering the first system of its kind in 2015.
"This work sits alongside our other workstreams in downhole and platform based compression systems, using CET's core technologies as the basis to build a range of energy industry applications of real value to our global partners.
"The contract further demonstrates the growing commercial and technical maturity of the CET technologies."