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Unexpected delay arises in Quadrise boiler trial project
Quadrise Fuels International updated the market on its planned combustion boiler trial project in the Kingdom of Saudi Arabia on Monday.
The AIM-traded firm had explained in December that the boiler trial was a "complex project" involving several parties, adding on Monday that progress was being made towards the finalisation of the remaining agreements by the respective parties.
It said its update on 22 January confirmed that the preparatory work for the fuel production was essentially complete, and that the third party engineering study for the boiler consumption phase had been delivered to the client in Saudi Arabia.
Since that update, commissioning of the fuel production system had been completed by Quadrise and the boiler engineering study was accepted by the KSA clients, the board said.
"Following recent discussions between the KSA counterparties, an unexpected delay has resulted from one aspect of the internal approvals process relating to the boiler trial agreement," it said in its statement.
"The respective parties are working hard to resolve this issue and it is anticipated that this can be achieved by the end of Q1 2018."
As it previously announced, Quadrise said the trial would only commence once all the agreements including a tri party and various bilateral agreements between the key parties are finalised.
It added that all parties were continuing to support the process, and were working towards completing all the necessary internal approvals required to reach final agreement as soon as possible.
"Quadrise is evaluating options to reduce the impact of the delays in finalising the agreements for the commencement of fuel production.
"This work will also look at opportunities to optimise the production and logistical phases of the schedule where possible, to enable the combustion phase to be completed during the second half of 2018 in line with the original timeline."
The board said further announcements would be made, as appropriate, in due course.