LONDON (Alliance News) - Corac Group PLC Monday said it has signed an amendment with Saudi Aramco to strengthen its in-pipe gas compressor contract, which will see the contract's value increase to over GBP1 million.
The amendment follows a technical review completed earlier this year, as announced at the time of the engineering company's half-year results in September.
Corac said the amendment signed between its subsidiary Corac Energy Technologies and Aramco Overseas Company BV, a subsidiary of Saudi Aramco, now valued the contract's valuation in excess of GBP1 million.
The in-pipe gas compressor is designed to maintain and improve the delivery of gas via above-ground pipelines and will enable Corac to support the design, development, build and test stages of the system for Saudi Aramco.
Corac said it would begin to design and build the revised system immediately, with an anticipated field testing in early 2015.
"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," Phil Cartmell, chief executive, said in a statement.
"The contract further demonstrates the growing commercial and technical maturity of the CET technologies," Cartmell added.
Corac shares were Monday quoted at 13.01, up 0.26 pence, or 2.06%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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