Management Completes Phase Three of Four (MOU), Poised for the Final Phase of Customer Contract
TOMBALL, TX / ACCESSWIRE / September 26, 2024 / QS Energy, Inc. (OTCQB:QSEP), a leader in oil transport technology, is pleased to announce the signing of a Memorandum of Understanding (MOU) with VIPS Petroleum, furthering their strategic partnership with one of Southeast Asia's premier energy producers and its state-owned oil and gas corporation. This MOU lays the groundwork for the commercialization of QS Energy's Applied Oil Technology (AOT) unit in collaboration with the government-backed oil and gas giant, marking a major step in the company's continued global expansion.
This agreement builds on the momentum established in QS Energy's previous announcement regarding its partnership with VIPS Petroleum, focused on enhancing oil transport efficiency. As outlined in the last update, the joint efforts are progressing on schedule, with key milestones being reached that position QS Energy for substantial growth. This partnership underscores the importance of new energy solutions in emerging markets and highlights the growing demand for the company's cutting-edge technology.
Wholesale Agreement
The signed MOU is structured as a wholesale pass-through agreement, designed to facilitate seamless integration of the AOT unit within the region's energy infrastructure. This approach ensures flexibility while accommodating the intricate needs of the energy landscape. Further details will follow as QS Energy and VIPS Petroleum work closely with their Southeast Asian partners to finalize the agreement's scope and implementation.
Three Revenue Silos: A Comprehensive Financial Framework
This agreement outlines a robust three-tier revenue model, consisting of:
1. Upfront Payments: Initial financial commitments that secure the deployment of the AOT units.
2. Sales and Lease Agreements: Structured lease contracts that allow for flexible financing options, ensuring the units are protected while also generating revenue through ongoing sales.
3. Royalty and Ancillary Revenues: Additional revenue streams will be realized through royalty payments and ancillary services, including transportation add-ons that complement the AOT unit's core function.
This comprehensive framework not only generates revenue but also secures long-term financial growth for QS Energy.
Financing the Future
The lease component of the agreement provides the necessary financial structure to facilitate the protection and deployment of AOT units within the national oil infrastructure of Southeast Asia. This innovative lease model allows for the financing of units while safeguarding QS Energy's intellectual property and operational integrity, ensuring a stable return on investment. The revenue model further strengthens the company's position for future growth and investment opportunities.
Announcement Timeline
QS Energy anticipates in the coming weeks that it will be in a position to formally announce the identity of the major customer, solidifying both the wholesale and retail aspects of the agreement. This significant update will reflect the culmination of joint efforts with VIPS Petroleum and their regional partners.
As QS Energy moves closer to finalizing these agreements, the company remains committed to transparency and will continue to update shareholders as developments unfold. With the Southeast Asian market opening new doors, the partnership with VIPS Petroleum and the national energy entity is set to drive both companies toward unprecedented success.
About VIPS Petroleum
VIPS Petroleum is an industry leader providing innovative petroleum solutions and exceptional service. Committed to leveraging advanced technologies, VIPS Petroleum aims to enhance the performance and sustainability of its operations. For more information, visit www.vipspetroleum.co.
For further information about QS Energy, Inc., visit https://www.qsenergy.com/, read our SEC filings at https://ir.stockpr.com/qsenergy/all-sec-filings and subscribe to Email Alerts at https://ir.stockpr.com/qsenergy/email-alerts to receive Company news and shareholder updates.
Safe Harbor Statement
Some of the statements in this release may constitute forward-looking statements under federal securities laws. Please visit the following link for our complete cautionary forward-looking statement: https://www.qsenergy.com/site-info/disclaimer
About Applied Oil Technology
QS Energy's patented Applied Oil Technology (AOT) is a solid-state turn-key system which uses a high volt / low amp electric field to reduce crude oil viscosity. AOT installs inline on crude oil pipelines, operates unattended without interrupting pipeline flow, with full remote monitoring and control. More information is available online at www.qsenergy.com.
About QS Energy
QS Energy, Inc. (OTCQB:QSEP), develops and markets crude oil flow assurance technologies designed to deliver measurable performance improvements to pipeline operations in the midstream and upstream crude oil markets. More information is available at www.qsenergy.com.
Company Contact:
QS Energy, Inc.
Tel: +1 844-645-7737
E-mail: [email protected]
Sales: [email protected]
SOURCE: QS Energy, Inc.
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