Magnomatics, the magnetic transmissions and ultra-compact motor company, has signed an exclusive licensing deal with Zilift, a leading developer of permanent magnet technologies for innovative artificial lift applications in the oil and gas industry.
The agreement provides Zilift with exclusive access to Magnomatics’ magnet technologies across the whole downhole oil and gas sector. As a result of previous collaborations, the technology firms have already achieved an industry first within the specialist artificial lift sector and aim to build on this success within the oil and gas industry.
The alliance results from a five year working relationship and this exclusive deal will enable Zilift to continue to revolutionise artificial lift processes with its sustained development of technology. While Zilift continues to have rights to exploit Magnomatics’ magnetic gear technology the deal further grants Zilift access to Magnomatics considerable permanent magnet motor expertise. In turn, new products employing Magnomatics patents will lead to a wider royalty stream for Magnomatics.
David Latimer, managing director of Magnomatics, said: “Our innovative magnetic gear is specifically designed to prevent damage to the pump or motor and is the only solution that can generate sufficient torque for effective pumping in a well of just 4.5” diameter. This product enables Zilift to make its artificial lift solutions robust while reducing deployment and energy costs, and is the smallest downhole artificial lift drive train to be successfully installed in an oil well globally.
“We have been working closely with Zilift for five years, we are delighted to have signed this licence deal and we look forward to continuing our working relationship.”
Iain Maclean, CEO of Zilift, said: “Utilising Magnomatics expertise from an early stage in our product developments has been of great benefit to Zilift. Magnomatics IP and expertise has allowed Zilift to develop some of the most advanced downhole electrical machines now available to the upstream oil and gas industry. Our combined efforts have created products that can be placed closer to a hydrocarbon reservoir than ever before thereby increasing production beyond that otherwise possible. This deal creates a strategic alliance to maximise value creation for our two companies and for the benefit of our clients.”
Artificial lift is a pumping technique used to extend the life of oil or gas wells beyond the period during which the well flows naturally. The process adds energy to the production stream to lift the fluids to surface, increasing production and profit margins for operators.