Northern Technologies Announces $3.7M Contract With Petrobras
Northern Technologies International Corporation (Nasdaq: NTIC) today announced the signing of a new contract between Petróleo Brasileiro S.A. - Petrobras (NYSE: PBR) and Zerust Prevenção de Corrosão S.A. (NTIC's Brazilian subsidiary) to supply $3.7 million (BRL$ 7.5 Million) in ZERUST® products to help protect Petrobras' off-shore oil production platforms from corrosion damage.
Petrobras, the world's 6th largest oil producing company in terms of volume, currently owns and operates 109 off-shore rigs. This is the third product supply contract awarded to NTIC's Brazilian subsidiary; however, it is the first that NTIC's Brazilian subsidiary will provide ZERUST® products to Petrobras's largest offshore business unit. This business unit analyzed the corrosion protection provided by ZERUST® at other business units and also conducted extensive multi-year product field trials against competitive alternatives.
"Based on the results of an advanced two-year technical field trial of ZERUST® technology, as well as the successful completion of both Phase 1 and Phase 2 supply contracts, we are very pleased to be moving on to Phase 3," said Patrick Lynch, President and Chief Executive Officer of NTIC. Mr. Lynch continued, "Upon completion of this new phase, we will finally have made initial installations of ZERUST® products across all Petrobras offshore business units. We naturally expect that this new validation will strengthen our efforts to sell ZERUST® solutions to additional oil and gas companies in other parts of the world.
ZERUST® oil & gas corrosion solutions are based on NTIC's patented and/or proprietary technologies and are intended to significantly extend the service life of oil and gas industry infrastructure beyond the capabilities of conventional alternatives. NTIC has a core research and development team dedicated to the oil and gas sector based in Beachwood, Ohio and is currently conducting joint research and development and trials with multiple major oil companies around the world. Together with its extensive joint venture network, NTIC has trained personnel in most geographic regions to support global oil and gas industry clients.
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