Cleango Innovations forms Cleango Arabia JV company

Executive Summary

• Cleango Innovations Inc. has established a new joint venture, Cleango Arabia Ltd., in partnership with Sanad Industrial Co. Ltd. (a subsidiary of EROG Holdings) in the Kingdom of Saudi Arabia.
• The joint venture aims to localize the manufacturing and distribution of Cleango’s proprietary green chemical solutions for the oil and gas industry, aligning with Saudi Vision 2030 goals for economic diversification and industrial localization.
• The venture will establish a state-of-the-art manufacturing facility in Saudi Arabia to produce and distribute Cleango’s certified green products across the GCC and MENA regions.

Key Details

• Joint Venture Structure: Cleango Arabia Ltd. is a new entity formed by Cleango Innovations Inc. and Sanad Industrial Co. Ltd.
• Strategic Partner: Sanad Industrial Co. Ltd. is under EROG Holdings, a prominent Saudi-owned entity established in 2014 that provides comprehensive services to the energy market in Saudi Arabia.
• Facility Plans: The joint venture will establish a state-of-the-art manufacturing facility within Saudi Arabia dedicated to the local production and distribution of Cleango's certified green solutions.
• Market Focus: The facility will serve the oil services industry in Saudi Arabia, the Gulf Cooperation Council (GCC), and the Middle East and North Africa (MENA) regions.
• Strategic Alignment: The initiative supports Saudi Vision 2030 by localizing advanced industrial capabilities, diversifying the economy, creating domestic jobs, and facilitating knowledge transfer.
• Product Portfolio (CG-100): The joint venture will distribute Cleango’s flagship product, CG-100, a certified green, non-toxic chemical solution with at least eight distinct applications in the oil patch:
  • Reservoir Waterflood Enhancement: Acts as a surfactant to reduce interfacial tension, improve sweep efficiency, and increase ultimate oil recovery without requiring mechanical changes or regulatory approvals.
  • Wellbore Tubular Cleaning: Treats wax and asphaltene deposition in wellbores, artificial lift systems, and flow lines; reduces electrical/fuel gas consumption and provides residual coating effects.
  • Perforation/Frac Port Cleaning: Dissolves plugging caused by wax precipitation via squeezing techniques (24-72 hour soak), often used with hot oilers or hydrochloric acid.
  • Flow Line Cleaning: Makes wax brittle for easier removal during pigging; reduces back pressure and operational costs without requiring facility retrofitting.
  • Facility Cleaning: Reduces sludge viscosity in production vessels during turnarounds (every 3-5 years); effective on dense oil using gamma jetting, vapor phase steaming, and pressure washing.
  • Completion Systems: Augments acid dissolving and washing during fracture stimulations, reducing parting pressure and horsepower charges.
  • Diluent Replacement: Removes oil from production casing during well abandonments to reduce groundwater contamination risks.
• Executive Commentary: CEO Anthony Sarvucci highlighted the partnership as providing "unparalleled access to the rapidly growing oil and gas market in Saudi Arabia and the broader GCC and African regions." Sanad Industrial CEO Ali AlKaabi noted the combination of regional market knowledge with Cleango's innovative technology.

Notable Quotes

• "This joint venture marks a pivotal moment for Cleango Innovations. Partnering with EROG Holdings and Sanad Industrial Co. Ltd. provides us with unparalleled access to the rapidly growing oil and gas market in Saudi Arabia and the broader GCC and African regions. Their deep-rooted expertise and commitment to local manufacturing align perfectly with our vision of delivering certified green solutions that not only enhance operational performance but also champion environmental responsibility." — Anthony Sarvucci, CEO, Cleango Innovations
• "We are thrilled to join forces with Cleango Innovations. Their certified green products offer a unique and highly sought-after solution for the oil services industry, which is increasingly focused on sustainability. Through Cleango Arabia Ltd., we will combine our regional market knowledge and distribution strength with Cleango's innovative technology to create significant value for our customers and contribute to the kingdom's Vision 2030 objectives of localization while fostering Saudi-made innovation." — Ali AlKaabi, CEO, Sanad Industrial