Colver Technologies says negotiations with an oil major to install its reactor technology at over 30 offshore oil rigs are progressing “in the right direction”.
Talks between Colver Technologies and an as yet unnamed major oil company to potentially install its modular gas-to-liquids reactor technology at over 30 offshore oil drilling platforms operating in various locations around the world appear to be progressing towards forming the basis for a formal contract.
The oil major, which continues to insist on anonymity because, contrary to earlier reports, it has not yet been prosecuted over its failure to halt flaring at rigs operating in the Niger Delta, is thought to be negotiating an out-of-court settlement with the Nigerian authorities as well as seeking to implement a permanent solution to burning off the natural gas byproduct of its oil drilling activities.
The Liaoning, China-based small-scale gas-to-liquids solution provider’s Chief Operating Officer, Gus Stuyvesant said that Colver Technologies had approached its bankers and stakeholders with a view to discussing the cost of providing the plant required in the event negotiations culminated in a formal contract.
“Make no mistake, the cost of tooling and plant for this project would run to millions of dollars and we will require additional funding to make good on our side of any deal. Our backers have been highly receptive and we’re expecting to be given the all-clear within a few days,” he said.
Responding to questions about the possibility of raising funding via an initial public offering of Colver Technologies stock, Stuyvesant said the lead time would be at odds with the perceived timetable for the conclusion of talks with the major.
“There is no chance whatsoever of the company going public in the timeframe we’re looking at for this deal,” he said. “Going public in order to raise money to take on a contract sounds utterly ridiculous. If we can’t raise the money to do our jobs, we probably shouldn’t be in business” he concluded.
About Colver Technologies
Colver Technologies’ modular GTL systems revolve around the Fischer-Tropsch reactor, a conversion technology developed in the 1920s by Franz Fischer and Hans Tropsche in Germany in 1925. It facilitates the production of significantly cleaner-burning liquid fuels like diesel and jet fuel from natural gas that contains no sulfur. We are committed to doing our part to drive uptake of GTL fuels as global efforts to reduce emissions increase and have invested heavily to ensure the continuing development of this highly attractive alternative to conventional energy production.
Contact Colver Technologies:
Longzhimeng Asia-Pacific Center
22 Pangjiang Street
Dadong, Shenyang, Liaoning