11th Sep 2014 09:34
LONDON (Alliance News) - Graphene NanoChem PLC Thursday said it has signed a licensing agreement and an offtake contract for the entire production of PlatDrill, a drilling fluid, under its Scomi-Platinum joint venture in Malaysia.
The joint venture between Graphene NanoChem's wholly-owned subsidiary, Platinum NanoChem Sdn Bhd, and a subsidiary of Scomi Energy services Bhd, Scomi Oiltools Sdn Bhd, was announced in April. Both companies have a 50% interest.
The joint venture is for the construction and operation of an integrated 45,000 tonnes per annum chemicals production facility, including a 30,000 tonnes per annum PlatDrill production plant and a 30 tonne per annum graphene nanomaterials facility in Port Klang, Malaysia, dedicated to supplying the oilfield chemicals market.
PlatDrill is a graphene-enhanced biodegradable drilling fluid, which Graphene NanoChem said offers significant operational benefits over traditional substances.
As part of the agreement, an offtake contract locks in the guaranteed sale, over a five-year period, of 135,000 tonnes of PlatDrill once the Port Klang plant has been commissioned, with an option for Scomi Oiltools to renew it for a further 5 years, it added.
Scomi is planning for the start up of the Port Klang Plant in the second-quarter of 2016 and is currently in discussion with several financial institutions to finalise the debt financing package for the joint venture, said Graphene NanoChem.
Chief Executive of Graphene NanoChem, Jespal Deol said the "partnership provides us with a ready-made market through Scomi's strong presence in the oil and gas service sector."
"The collaboration with Graphene NanoChem enables Scomi Oiltools to be a provider of game changing, cutting-edge and environmentally green drilling solutions which enable time and cost savings for our customers," added Wan Salaidin, president of market units at Scomi.
Graphene NanoChem's shares were up 0.2% to 61.50 pence per share Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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