The MOA commits the parties to an exclusive relationship within Saudi Arabia.
Alternative fuels business Quadrise Fuels International (QFI) [LON:QFI] announced today it's subsidiaries have signed a Memorandum of Agreement (MOA) with M/S Rafid Group for Trading & Contracting (Rafid) to formalise their relationship in anticipation of contractual commitments for the application of Quadrise's MSAR synthetic fuel oil in the Kingdom of Saudi Arabia.
According to the press release, the MOA commits the parties to an exclusive relationship within Saudi Arabia.
The news, which sent shares in QFI rising some 64% today, follows recent approval by Saudi Aramco of the MSAR technology.
Following agreement on contract terms for the first MSAR process installation in a major refinery in the Kingdom, Quadrise and Rafid say they will form a joint venture company to undertake all further business in Saudi Arabia in which Rafid will hold an interest of up to 30%.
Mr Ian Williams, Chairman, Quadrise
Saudi Arabia is a key market with enormous business potential for Quadrise
"We are delighted to have concluded this agreement with Rafid. Their capabilities and reach have proved to be a very good fit with our expertise and technology," commented Mr Ian Williams, Chairman of Quadrise.
"Saudi Arabia is a key market with enormous business potential for Quadrise, especially as the Government seeks to optimise energy resources in the Kingdom," he added.
Chairman of Rafid, Mr Abdul Aziz Al Mandil, said he thought the MSAR technology "offers great benefits for both Saudi Aramco and the Kingdom at large."
Quadrise say its Multiphase Superfine Atomized Residue (MSAR) Synthetic Fuel Oil (SFO) is a proprietary water in hydrocarbon based emulsion fuel which can cost between 5% to 50% less than traditional fuel oil, bunker oil, or natural gas.
Rafid was described as a private, multinational conglomerate made up of more than 20 companies and affiliated businesses that supply a broad range of services to the energy, utilities and infrastructure sectors in Saudi Arabia.
The principal client of Rafid and its partners is Saudi Aramco.