Engineering group Hunting Plc is acquiring the organic oil recovery intellectual property rights from its founding shareholders for $17.5 million.

The deal includes more than 25 patents and the technology’s distribution rights, plus a laboratory in California.

The EOR technology is simple to deploy and reduces capex for operators, as well as increases economic returns and extends the life of a well, Hunting said in a March 7 press release.  It lowers the water cut during end-of-life production and lowers hydrogen sulphide levels in production offtake.

As part of the deal, Hunting will pay a 15% royalty to the sellers on the revenue earned from the technology for 15 years.

Field trials for the tech are currently underway in North America, Europe, the Middle East and Asia. Hunting has already secured $60 million worth of orders from operators in the North Sea.

“Following the acquisition of this exciting business, Hunting now has the ability to deploy this remarkable technology globally. The technology is currently being evaluated by many blue-chip customers, with the benefits to the operator clear,” said CEO Jim Johnson. “For Hunting, the business will be margin accretive and strongly position the Company to reach its Hunting 2030 Strategy targets in the medium term as commercialization accelerates.”

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