(Alliance News) - Enteq Upstream PLC on Tuesday said that it has signed an agreement to licence Royal Dutch Shell PLC's technology for manufacturing a rotary steerable drilling system.
The oilfield services technology and equipment supplier has signed a license agreement with Shell Global Solutions (US) Inc and Shell Global Solutions International. The agreement gives Enteq exclusive rights to incorporate Shell's patented intellectual property plus other technology for manufacturing the drilling system.
Enteq expects the development of a commercial rotary steerable drilling system to take up to a further two years and require a total investment of up to USD3 million, including some initial payments to Shell. Additional expenditure for the subsequent build of trial and commercial inventory would be required and royalty payments will be due to Shell when commercial, the company noted.
The rotary steerable drilling market is currently estimated at USD1 billion within the globally assumed USD10 billion directional drilling sector for oil and gas, according to Enteq.
Enteq shares were broadly flat at 25.00 pence each on Tuesday afternoon in London. Class A shares of Shell were up 1.6% at 2,312.00p each.
Enteq Tech (NTQ)