Hunting, a UK-based energy services provider, has announced the acquisition of Organic Oil Recovery (OOR) technology from its original shareholders for $17.5m (£13.55m).
This strategic move grants Hunting the global rights to the OOR technology, positioning the company to accelerate commercialisation efforts across North America and worldwide.
The acquisition includes more than 25 discrete patents, the rights to distribute the technology, and a laboratory in California, US.
The deal also involves a 15% royalty payment to the sellers on revenue earned over the next 15 years after the completion of the acquisition.
OOR is an advanced oil recovery technology that enhances the extraction of oil reserves from a well.
The technology helps extend the life of producing fields and maximise economic returns. It is designed to be a cost-efficient solution that reduces capital expenditure and is easy to implement.
Additionally, OOR improves production efficiency by lowering the water cut during late-stage extraction and reducing hydrogen sulphide levels in the production offtake.
Field trials of the technology are currently in progress with several exploration and production companies across North America, Europe, the Middle East and Asia-Pacific.
Hunting chief executive Jim Johnson said: “Following the acquisition of this exciting business, Hunting now has the ability to deploy this remarkable technology globally. The technology is currently being evaluated by many blue-chip customers, with the benefits to the operator clear.
“For Hunting, the business will be margin accretive and strongly position the company to reach its Hunting 2030 Strategy targets in the medium term as commercialisation accelerates.”
Hunting is also planning to establish a new laboratory in the United Arab Emirates to service clients in the eastern Hemisphere, with the aim of reducing sample lead time and overall analysis time due to closer proximity to customers.
In August last year, Hunting secured up to $60m of orders from operators in the UK North Sea.
“Hunting acquires Organic Oil Recovery tech for $17.5m” was originally created and published by Offshore Technology, a GlobalData owned brand.
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