Under the terms of the agreement, Schlumberger will pay a US$75 million exclusivity fee immediately.
Schlumberger will also make two separate US$25 million milestone payments subject to the company satisfying certain key performance indicators expected to occur in 2016. The agreement also includes continuing annual royalties for the duration of the licence agreement.
VorTeq is a hydraulic fracturing manifold built to isolate hydraulic fracturing pumps from abrasive proppants that cause pump failure.
Energy Recovery’s president and CEO Joel Gay said: “We believe this technology offers Schlumberger the immediate benefit of reducing wear and tear on its pumps, as well as reducing downtime. In the medium-term, we believe it provides Schlumberger additional savings associated with eliminating redundant equipment onsite.”