NATCO Joins SE Asia JV Deal
NATCO Group Inc. said that it has entered into a joint venture agreement with Scomi Group BHD to pursue the expanding market for CO2 processing using NATCO's proprietary Cynara® membrane technology, used in the separation of carbon dioxide (CO2) from natural gas production streams, and Scomi's field services capabilities.
The joint venture will initially focus on the Southeast Asia market. It will have access under a new license agreement to other NATCO proprietary technologies, including oil treating and water injection applications, and the full range of support services offered by Scomi.
John U. Clarke, Chairman and Chief Executive Officer of NATCO, said, “Our joint venture with Scomi significantly advances our strategy of further deploying our membrane technology by our aligning with a highly regarded strategic partner with complementary objectives in a key market. The joint venture enhances our ability to satisfy local content requirements, lower fabrication and transportation costs and increase brand recognition in the region.”
”The South East Asia market is large and expanding,” noted Clarke. “It offers two significant, near-term strategic opportunities which will serve as the initial focus of the joint venture. The first is utilizing NATCO's membrane technology and related production systems expertise to separate high concentrations of naturally occurring CO2 to be produced from prolific natural gas fields currently under, or planned for future, development. The most recent example is the previously announced $46.4 million CPOC project in the joint development area offshore of Thailand and Malaysia which was awarded to NATCO in June based on our proprietary systems and the provision of key local content.”
Clarke added, “The second opportunity is to utilize our membrane technology in enhanced oil recovery from mature fields offshore Malaysia and in other countries in the region. In much the same way that we support the CO2 flood operation of the SACROC field in West Texas, our technology also can be used to optimize field hydrocarbon recoveries.”
Clarke concluded by saying, “The joint venture with Scomi facilitates our stated objective of accelerating our growth through strategic alliances with industry leaders. Such arrangements allow us to leverage our technologies globally without incurring the delay or significant front-end costs associated with new market development.”
NATCO Group Inc. is a provider of wellhead process equipment, systems, and services used in the production of oil and gas. The company has designed, manufactured, and marketed production equipment and services for nearly 80 years. NATCO production equipment is used onshore and offshore in most major oil and gas-producing regions of the world.
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Company: Scomi Group Berhad more info
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