LiqTech International Inc has secured its first oil and gas order through its joint venture in the Middle East.
This initial order, valued at around US$4.0 million in sales, was received from a major oil field services company. The customer will deploy LiqTech’s water filtration systems for a fixed monthly rental fee paid to the joint venture. LiqTech will recognise a portion of the profits from the joint venture over the rental term, as well as revenue and profit from the upfront system sales to the joint venture.
The joint venture, which is 49% owned by LiqTech, is focused on deploying the company’s proprietary silicon carbide ceramic filtration technology to oil and gas producers in the Middle East to mitigate local water scarcity.
“This is clearly a significant milestone for LiqTech,” said Sune Mathiesen, CEO of LiqTech. “Not only are we now entering a very large addressable market, this also marks our first entry into a ‘build, own and operate’ model where we can generate income from both the sale and operation of our water filtration systems.”
“We believe that this is the first of many orders in the region and we currently anticipate further large orders this year,” added Mathiesen.