Quadrise shares leapt by over half on Wednesday after the company, which produces a low-cost alternative to fuel oil, announced that its subsidiaries have signed a memorandum of agreement (MOA) with M/S Rafid Group ahead of contractual commitments for the application of Quadrise's MSAR technology and fuel in the Kingdom of Saudi Arabia.
The MOA means that both firms are now in an exclusive relationship with Saudi Arabia, and once the terms of the contract are finalised for the first MSAR process installation, 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%.
The project is expected to include the first major refinery project, followed by a larger scale programme to process larger quantities of the available heavy residues within Saudi Arabia to MSAR.
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Saudi Aramco, the main client of Rafid, has given its approval of the potential application of Quadrise MSAR technology in its refinery portfolio.
Rafid is a private, multinational conglomerate made up of more than 20 companies and affiliated businesses that supply a range of services to the energy, utilities and infrastructure sectors in Saudi Arabia.
The partnership with Rafid satisfied the requirement for major international suppliers of technology services to Saudi Aramco to form partnerships with local engineering companies to ensure that Saudi nationals gain requisite experience.
Discussions are currently being held with Saudi Aramco to allow Quadrise to assist with the conversion of Suadi Arabia-based utility clients from crude oil or fuel oil to MSAR fuel, in order to match local market consumption with planned production.
Chairman of Quadrise, Mr Ian Williams, said: "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.
"Saudi Arabia is a key market with enormous business potential for Quadrise, especially as the Government seeks to optimise energy resources in the Kingdom. Rafid is a proven partner for the Saudi Aramco programme, and for the many other opportunities evident in this market."
The share price soared 59.57% to 9.38p by 09:05.
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