NTIC Subsidiary, Petrobras Sign Phase 2 Contract
Northern Technologies announced the signing of a Phase 2 expanded contract between Petrobras and Zerust Prevencao de Corrosao S.A. (NTIC's Brazilian subsidiary) to supply an additional $2.6 million (BRL$ 4.21 Million) in ZERUST(R) FlangeSaver(TM) products to help protect several more of Petrobras' offshore oil production rigs from corrosion damage.
Petrobras, the world's 6th largest oil producing company in terms of volume, currently owns and operates 109 offshore rigs. Prior to awarding contracts to NTIC's Brazilian subsidiary, Petrobras conducted extensive multi-year product field trials against competitive alternatives. This new contract is a result of the fulfillment of the Phase 1 contract awarded by Petrobras to NTIC's Brazilian subsidiary in July 2010 for an initial implementation of $1.4 million (BRL$ 2.5 Million) in FlangeSaver products.
"We are very pleased that our ZERUST(R) FlangeSaver(TM) corrosion protection products continue to prove their value to Petrobras by helping to reduce operating, environmental and maintenance costs by significantly extending the operational integrity and safety of certain equipment on their offshore rigs," said Patrick Lynch, President and Chief Executive Officer of NTIC. "Corrosion is a significant threat to keeping essential equipment operating properly on off-shore installations. Zerust(R) products have proven, time and again, their ability to provide the corrosion prevention necessary to protect infrastructure and thereby protect the oil workers from harm and the environment from damage," Mr. Lynch continued. "We're proud to offer the oil and gas industry innovative solutions to protect against the environmental damage that can be caused by corrosion damage to oil and gas infrastructure."
FlangeSaver technology as well as other Zerust(R) Oil & Gas corrosion solutions are based on NTIC patented and/or proprietary technologies and are intended to significantly extend the service life of oil and gas industry infrastructure beyond the capabilities of conventional alternatives. NTIC has a core R&D team dedicated to the Oil & Gas sector based in Beachwood, OH and is currently conducting joint R&D and trials with multiple major oil companies around the world. Together with its extensive joint venture network, NTIC has trained personnel in most geographic regions to support global oil & gas industry clients.