FluidOil has concluded an agreement to form a new joint venture in Mexico, to advance the commercialisation of its VHTL upgrading technology in the country.
The joint venture, trading as FOMEX S.A. de C.V. (“FOMEX”), will see a new local partner, Petrofusion S.A de C.V. (“Petrofusion”), join FluidOil’s existing partner in Mexico, Mr. Americo Leal Rios (“Mr. Leal”), to provide testing and heavy oil upgrading services to Pemex, the state oil company, and other third parties, as well as to improve techniques and processes associated with producing, processing and refining heavy oil in Mexico.
FluidOil Chief Executive Officer, Charles Parker, said:
“We are delighted that our partners in Mexico recognise the opportunity that VHTL technology represents as well as the economic and logistical benefits it can bring to the heavy oil and refining market. Our partners have great experience in running successful businesses in the Mexican energy and resources sectors and have already demonstrated their ability to market VHTL and position FOMEX to secure suitable contracts. We are excited to partner with them as we seek to build a significant business in the country.”
FluidOil is implementing a multifaceted strategy to commercialise its VHTL technology. This involves the installation of VHTL heavy oil upgrading plants for a range of customers. The Company is actively pursuing this strategy in various regions of the world and has advanced opportunities currently in North America and the Middle East, as well as in Mexico.
This joint venture will see the local partners fund all of FOMEX’s core operations, including the installation, commissioning and operations of a pilot testing plant to provide a dedicated feedstock testing facility in Mexico. FluidOil will provide FOMEX with technical expertise and commercial support.
The FOMEX joint venture (FluidOil share 50 per cent, Petrofusion share 25 per cent, and Mr Leal share 25 per cent) holds full exclusive rights over the license for VHTL technology in Mexico. FOMEX has a mandate to negotiate, sign and deliver full service contracts with third parties in Mexico to commercialise VHTL technology.
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Petrofusion is a subsidiary of MVRS Holdings, a Mexican, multinational holding company, headquartered in Monterrey, Mexico, with operations in 19 countries and employing more than 1,300 people. MVRS encompasses a diverse portfolio of investments across a number of sectors including financial services, venture capital, business consulting, steel, chemicals, plastics, food service, entertainment, assistance services, real estate and land development, and oil technology. Petrofusion focuses specifically on the oil and gas market and invests in pioneering and innovative technologies that can disrupt the industry.
About Mr. Americo Leal Rios
Mr Leal is the owner of PYMSA S.A. de C.V. (“PYMSA”), a family-owned Mexican company focused on providing oil services to Pemex, as well as developing other opportunities in the Mexican oil sector. FluidOil and Mr Leal entered into a Framework Agreement in 2013 to offer heavy oil upgrading services in Mexico to Pemex and to raise the profile of FluidOil’s upgrading technology in the country.