Rex unit secures deal from national oil firm

CATALIST-LISTED Rex International Holdings says its Switzerland-based unit Rexonic AG has secured its first ground-breaking contract with a national oil company (NOC).

The deal which Rexonic clinched through a wholly owned unit is worth about US$10 million if fully executed over the next 24 months, said Rex International. The contract is expected to contribute to the group's earnings for the current financial year.

Rexonic AG, in which Rex International has a 66.7 per cent stake, will provide its ultrasonic well stimulation technology on certain wells owned by the client, which is said to be a "reputed and large" NOC. The name has been withheld at the request of the client, said Rex International. The contract is expected to start at the end of this year, with the exact timing dependent on, among other things, the arrival of third-party technical components, said Rex International.