By Joe Hoppe
Sabien Technology Group PLC shares rose Wednesday after it said its South Korean partner and its partly-owned special purpose vehicle B.grn have signed supply contracts to develop the first regenerative green oil system in the U.K.
Shares at 0909 GMT were up 1.25 pence, or 10% at 13.5 pence.
The provider of carbon-reduction technologies said that B.grn–a company it holds a 33% stake in–has signed a binding contract with South Korea’s City Oil Field, with Sabien acting as sales agent. Under the agreement, B.grn is responsible for securing, funding and developing a suitable site and procuring all necessary equipment from COF, while COF is bound to supply at contracted prices.
A fee has been paid by B.grn to COF to formalize the contract, and the agreement is conditional on raising the required funding and entering an engineering, procurement, and construction contract within a year. Sabien said it was probable but not guaranteed the agreement will be completed.
Subject to the agreement completing, Sabien will get a $1 million commission on successful delivery and installation of the first site and each subsequent site, as well as a share of B.grn earnings.
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