7 Oct 2013 07:00
7th October 2013
CORAC GROUP PLC
("Corac" or the "Group")
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."
Ends
For further information please contact:
Corac Group plc | www.corac.co.uk |
Phil Cartmell, Chief Executive Officer | 01753 285 800 |
Jon Carter, Chief Financial Officer | |
Cenkos | |
Ivonne Cantú / Elizabeth Bowman - Nomad | 020 7397 8980 |
Jeremy Warner-Allen - Sales | |
MHP Communications | 020 3128 8100 |
Reg Hoare / Vicky Watkins / Naomi Lane |
NOTES TO EDITORS
Corac Group plc is a group of innovative UK based engineering companies, active in energy and environmental technologies. Group companies produce valuable solutions in compression systems, atmosphere management and heat exchangers for government, energy and industrial users. It has traded shares on the London Alternative Investment Market (AIM) since July 2001.
Aramco Overseas Company B.V. (AOC) is a subsidiary of the Saudi Arabian Oil Company (Saudi Aramco), based in The Hague, the Netherlands. AOC operates primarily in Europe, Asia, Australia and Africa, providing its affiliates in the Saudi Aramco global oil and gas enterprise with a wide range of services including finance support, supply chain management, technical support services and a variety of administrative support services.
Saudi Aramco, the state-owned oil company of the Kingdom of Saudi Arabia, is a fully-integrated, global petroleum enterprise and a world leader in exploration and producing, refining, distribution, shipping and marketing. The company manages proven reserves of 260.1 billion barrels of crude oil and the fourth-largest gas reserves in the world, 275.2 trillion cubic feet.