Flotek signs letter of intent with Gulf Energy to build oilfield chemistry facilities in sultanate
US-based Flotek Industries has announced plans to build an advanced oilfield chemistry production facility and research and development centre in Oman.
It said in a statement that it has signed a letter of intent with an affiliate of Oman's Gulf Energy to address the growing need for advanced oilfield chemistry and analysis in the Middle East and North Africa.
Under the terms of the Agreement, Flotek will own 60 percent of two new Omani-registered limited liability companies.
The first will be a chemical production company that plans to construct a production facility - with capabilities similar to the Flotek's current facility in Oklahoma; while the second will be a research and development laboratory.
Flotek and Gulf Energy will jointly market the products and services of the company along with Flotek's international marketing partner, Basin Supply Company, the statement said.
The creation of the Omani companies is subject to the execution of shareholder agreements between Flotek and Gulf Energy, it added.
"This partnership with Gulf Energy, which has been several months in process, is an important and significant step in establishing Flotek's leadership position in global oilfield chemistry," said John Chisholm, Flotek's chairman, president and CEO.
"Combining Flotek's advanced oilfield chemistry solutions, Gulf Energy's existing clients and the best research minds in the region is a formula that should create a leading oilfield technology effort in the Middle East and North Africa."
Gulf Energy has secured acreage near the Omani port of Sohar to construct a chemical production facility which is expected to cost about $10m to construct.
Once complete, the facility will market and provide oilfield chemistry to projects throughout the region. It is anticipated that the research and development facility will be located in or near Muscat, the commercial centre of Oman and headquarters of Gulf Energy.
Hilal Al Busaidy, CEO of Gulf Energy, said: "Gulf Energy's continued growth as an integrated service and oilfield technology provider throughout the region brings key relationships to this partnership.
"There is little doubt there is a compelling need for the type of advanced chemistry solutions Flotek can provide. We look forward to developing our partnership into a leader in oilfield chemistry throughout the Middle East and North Africa."
Texas-based Flotek is a global developer and distributor of a portfolio of innovative oilfield technologies, including specialty chemicals and down-hole drilling and production equipment.