Quadrise Fuels International PLC MOA Signed with Saudi Arabian Partner (5055K)
22 August 2012 - 4:01PM
UK Regulatory
TIDMQFI
RNS Number : 5055K
Quadrise Fuels International PLC
22 August 2012
22 August 2012
Quadrise Fuels International PLC ("QFI" or "the Company")
Memorandum of Agreement Signed with Saudi Arabian Partner
Quadrise, the emerging supplier of MSAR(R) , a low cost
alternative to heavy fuel oil in the shipping, refining, and power
generation markets, is pleased to announce that Quadrise group
subsidiaries have executed a Memorandum of Agreement ("MOA") with
M/S Rafid Group for Trading & Contracting ("Rafid") to
formalise their relationship in anticipation of contractual
commitments for the application of Quadrise MSAR(R) technology and
fuel in the Kingdom of Saudi Arabia ("KSA").
The MOA commits the parties to an exclusive relationship within
KSA. In addition, when contract terms are finalised for the first
MSAR(R) process installation in a major refinery in KSA, Quadrise
and Rafid will form a joint venture company to undertake all
further business in KSA in which Rafid will hold an interest of up
to 30%.
Recent key milestone events that have resulted in the conclusion
of the MOA include:
-- Formal approval by Saudi Aramco for the potential application
of Quadrise MSAR(R) technology in its refinery portfolio, following
reaffirmation of refinery project economics by a cross functional
team of Saudi Aramco specialists.
-- Confirmation of the candidate Saudi Aramco refinery selected
for the first MSAR(R) process installation, which today produces
over 25 million barrels (4 million tonnes) of fuel oil per
annum.
-- Commercial arrangements currently in discussion with Saudi
Aramco for Quadrise specialists to assist with the conversion of
KSA based utility clients from crude oil or fuel oil to MSAR(R)
fuel, to match local market consumption with planned
production.
The final detailed definition of the Saudi Aramco project
planning and execution process will ultimately determine the
MSAR(R) implementation timetable. The scope is expected to
encompass the first major refinery project, followed by a larger
scale programme to process larger quantities of the available heavy
residues within KSA to MSAR(R) .
The MOA was signed between Quadrise International Limited and
Quadrise KSA Limited, both Quadrise group companies, and Rafid.
Founded over 25 years ago Rafid is a private, multinational
conglomerate made up of more than 20 companies and affiliated
businesses that supply a broad range of services to the energy,
utilities and infrastructure sectors in KSA. The principal client
of Rafid and its partners is Saudi Aramco.
It is increasingly becoming a requirement for major
international suppliers of technology services to Saudi Aramco to
form partnerships with local engineering companies to ensure that
Saudi nationals gain requisite experience. The agreement executed
with Rafid and the intended joint venture company will ensure that
Quadrise and Rafid are fully aligned with this guidance.
The conversion of KSA oil fuelled power generators from local
and imported fuel to MSAR(R) offers major economic benefits at a
national level, including the release of middle distillates in the
refinery and the related reduction in imports of diesel fuel. There
are also many operational benefits for the power plant operators
associated with enhanced fuel stability, improved combustion with
negligible black carbon (soot), and much reduced NOx emissions.
Commenting on these developments, Chairman of Quadrise, Mr Ian
Williams, said:
"We are delighted to have concluded this agreement with Rafid.
Their capabilities and reach have proved to be a very good fit with
our expertise and technology.
Saudi Arabia is a key market with enormous business potential
for Quadrise, especially as the Government seeks to optimise energy
resources in the Kingdom. Rafid is a proven partner for the Saudi
Aramco programme, and for the many other opportunities evident in
this market."
Commenting on the relationship, Chairman of Rafid, Mr Abdul Aziz
Al Mandil, said:
"The Rafid Group is an established conglomerate with successful
partnerships with major companies such as CNPC, CTCI, China Harbour
and Rotary Engineering. We have a proven track record of winning
multi-million dollar contracts with KSA customers such as Saudi
Aramco, SABIC, SEC, SWCC and Marafiq.
We have been convinced from the outset of our relationship with
Quadrise that MSAR(R) technology offers great benefits for both
Saudi Aramco and the Kingdom at large. The recent approval of
MSAR(R) technology by Saudi Aramco is a major milestone. It
confirms that the commercial basis has been established at the
highest level to proceed together with Quadrise, and now for us
jointly to secure commitments to commercial applications
expediently."
Ian Williams, Executive Chairman
Hemant Thanawala, Finance Director +44 (0)20 7550
Quadrise Fuels International PLC 4931
Dr Azhic Basirov / Siobhan Sergeant
Nominated Adviser +44 (0)20 7131
Smith & Williamson Corporate Finance Limited 4000
Dermot McKechnie / Petre Norton
Broker + 44 (0)20 7601
Westhouse Securities Limited 6100
Philip Dennis / Nick Lambert / Rollo Crichton-Stuart
Public & Investor Relations +44 (0)20 7861
Pelham Bell Pottinger 3232
This information is provided by RNS
The company news service from the London Stock Exchange
END
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