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TOMBALL, TX - QS Energy, Inc. (OTCQB:QSEP) has secured an initial order for five Applied Oil Technology (AOT) units valued at $25 million as part of a potential larger deployment across Southeast Asia and Africa, according to a company press release.
The order represents the first phase of what could become a 400-unit framework worth up to $2 billion with VIPS Petroleum, QS Energy’s regional distributor. The company expects full payment for the initial units this quarter, with the remaining 395 units to be delivered in phases with a 50/25/25 payment structure starting in Q3 and Q4 2025.
The AOT technology is designed to reduce crude oil viscosity by approximately 10% using electric fields, which lowers pump pressure and energy costs during pipeline transport. The company states the technology has been validated through peer-reviewed studies and field trials.
"This order proves our technology’s readiness to transform crude transport," said Cecil Bond Kyte, CEO of QS Energy, in the statement.
QS Energy designs and manufactures the AOT systems in the United States, working with several American manufacturing partners. The company indicates it will receive a share of incremental barrels gained through AOT-enabled flow increases, creating potential for additional performance-based revenue.
The deployment program is structured with milestone payments and financial guarantees, according to the press release. The company reports it is also in expansion discussions with potential partners in Australia and the Middle East to replicate this deployment model in other regions.
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