Oil Tech Royalties (OTR) has signed a non-binding Letter of Intent with Kuwait-based Al-Rashed to form a joint venture to promote OTR’s acoustic flow valve technology in the country
Al-Rashed will introduce OTR’s technology to its potential customers. The company will also help OTR in identifying locations and resources required for the pilot test.
According to the LoI, OTR will provide its proprietary technology and technical know-how for pilot tests at power generation facilities and for use in the treatment of heavy oil in Kuwait.
“The OTR technology can 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 nations has been already commercialised in Latin America with success,” said a company source.
OTR is a joint venture company with a licence to commercialise its proprietary acoustic flow reactor valve. TXO, oil waste and recovery company, has 30 per cent stake in OTR.
Tim Baldwin, CEO of TXO, said, “This is a substantial step forward for OTR. The technology is proven elsewhere on heavy oil and fuel used in power generation, and we are pleased to enter Kuwait to work with such an influential partner to further exploit the technology. Heavy oil is the growth area of production in Kuwait.
“OTR is also in advanced discussions with parties in Saudi Arabia, and we hope to be able to update shareholders shortly. In 2013, both Saudi Arabia and Kuwait announced the development of their heavy oil fields.”
