Mitsui acquires minority stake in Water Standard
Houston-based Water Standard Management (US) Inc, which focuses on water treatment for enhanced oil recovery (EOR), announced on 30 May 2012 that Japan's Mitsui & Co Ltd has acquired a minority interest in the company.Water Standard is actively participating in the design and development of a number of closely watched offshore EOR projects in Asia that will incorporate next-generation water-related technologies promising significant improvement in overall EOR economics and efficiencies.
Demand for EOR products and services to increase recovery rates is expected to grow significantly, driven by declining production in mature reservoirs and the cost of developing new reserves. Water-based EOR is one of the fastest growing segments in secondary and tertiary EOR, demonstrating, in some cases, incremental oil recovery of 10-30%, says Water Standard.
"We are extremely pleased to close this transaction with Mitsui," said Amanda Brock, CEO of Water Standard. "Mitsui shares our belief that we will see rapid growth globally in EOR. With their strategic support and the synergies we have identified in their existing portfolio of companies, Water Standard will continue to expand its capabilities and geographic reach and its development of products and services needed for effective implementation of water-based EOR."
"Mitsui views Water Standard, with its unique water-based solution for the oil industry, as a contributor with significant potential for effective utilization of the limited hydrocarbon resources on the earth which coincides with Mitsui's dedication to a sustainable society," said Jun Aketa, general manager of the First Projects Development Division in Mitsui.
Water Standard, which was founded in 2008, is currently working with several oil producers to develop solutions specifically designed to meet their unique water treatment requirements. Its H2Ocean Spectrum Technology was recently validated during pilot testing, confirming its ability to provide the unique flexibility needed to optimize EOR performance.
The technology effectively addresses challenging water requirements and customizes water quality in real time adapting to not only the quality of the source water, but also changing reservoir needs during the life of a project.
· Water Standard's revised strategy paying off