Corac is delighted to announce that on 16 May 2011 it signed a partnership agreement with Aramco Overseas Company B.V ("AOC") part of The Saudi Arabian Oil Company ("Saudi Aramco") for the development of an in-line gas compressor ("IGC") utilising Corac's unique compact high speed compressor technology. The IGC application would be located above ground and introduced in the production pipeline to boost and optimise network gas flows, offering Saudi Aramco significantly improved control and flow of their gas assets.
Due to the demanding conditions that the IGC would be required to operate in, Corac will engage in a research and development program in partnership with Saudi Aramco that will take 18 months. Throughout the initial development program, Saudi Aramco will provide technical and financial support, as agreed within the commercial terms and will then manage the subsequent in-field deployment and monitoring phase at one of their selected assets, supported by Corac's skilled engineers.
Phil Cartmell, Executive Chairman and CEO commented,
"I am very pleased that we have now secured this partnership agreement with Saudi Aramco, one of the world's leading oil and gas exploration and production companies. This is a major opportunity to utilise our technology and it is significant for us to have such a key partner and potential end customer for this application. Corac's IGC technology may have a far reaching impact in the gas industry with the potential to become as established as Electrical Submersible Pumps in the oil industry. This further supports the confidence in our core technology as well as broadening Corac's commercial opportunities in line with our stated strategy."