Rex International inked JV with Swiss firm Ogsonic for oil production technology

Rex will have a 66.7% share.

According to OSK, Rex International has formed a joint venture with Swiss company Ogsonic to provide a proprietary well stimulation technology to oil production and oil service companies, extending its technology offering from oil exploration to oil production. 

The technology, developed by Ogsonic uses ultrasound to breakdown production wellbore debris such as wax, paraffin and salt deposits increases the flow of oil into the wellbore.

The firm will hold 66.7% in the joint venture to be paid with USD10m in cash and SGD12.4m through the issuance of 15.7m new ordinary shares at SGD0.786 each. In addition, to finance the JV and other opportunities, Rex is also planning a private share placement of up to 70m new shares at SGD0.755 each raising about SGD52.85.