Engineering product and solution provider, Synertec Corporation Limited (ASX: SOP), has signed an exclusive worldwide license agreement with Sichuan GreenTech Environmental Co. Ltd.
The Agreement grants Synertec the exclusive right to investigate and commercialise Greentech’s novel environmentally- friendly and cost-effective Composite Dry Powder (CDP) technology for the treatment of hydrocarbon drilling mud and allied applications in all jurisdictions outside of China.
The licence granted to Synertec by Greentech is an exclusive and irrevocable license to the Greentech Intellectual Property. The License Agreement is granted on a worldwide basis, with the exception of the People’s Republic of China. Importantly, Synertec may sub-license its rights under this agreement to third parties.
Managing Director, Michael Carroll, said the signing of the License Agreement allows Synertec to leverage its deep relationships with existing clients in Australia whose operations could potentially benefit significantly from the environmentally friendly and cost-effective CDP technology.
We are delighted to deepen our relationship with Greentech through this Agreement and are excited by the progress we are seeing in the CDP Pilot programme,” Mr Carroll said.
“We are licensing the CDP technology as we have identified strong potential for cross-selling into the Australian and other global markets based on our existing client relationships in oil & gas technology.
“With the benefit of the strong Chinese trial results to date, we expect this process to advance rapidly as we work towards introducing and rolling out commercial-scale pilot programs with Australian energy operators. We will leverage our customer relationships with major Australian operators.
“It is worth highlighting that the major SOEs which have been so supportive of the initial trials in China have equity positions in major energy operations in Australia.
“These Australian operations have similar challenges with respect to the treatment of drilling mud. We believe our success in China will translate directly to opportunities in Australia and beyond.
“The License Agreement opens the way for Synertec to bring decades of knowledge and experience in solution and product development to the CDP technology.
“We can apply this experience and knowledge not only to the Australian market, but to the requirements of other major drilling nations, such as the USA and Canada.”
