QS Energy Receives Initial Order for Multi-Year AOT Technology Deployment

Rhea-AI Summary

QS Energy (OTCQB:QSEP) has secured a landmark order for its Applied Oil Technology (AOT) systems in Southeast Asia and Africa. The initial $25 million order for 5 AOT units is part of a larger government-backed program with VIPS Petroleum that could expand to 400 units worth $2 billion. The technology, which reduces crude oil viscosity by 10% or more using electric fields, improves transport efficiency and sustainability. The deal includes a 50/25/25 payment structure starting in Q3-Q4 2025. QS Energy manufactures the AOT systems in the US through partnerships with established manufacturers. The company will also earn revenue from increased oil flow performance. This breakthrough order demonstrates AOT's commercial viability and positions QS Energy for global expansion into other markets.

Positive

• Initial $25 million order for 5 AOT units with full payment expected this quarter
• Potential expansion to 400 units worth $2 billion total contract value
• Structured 50/25/25 payment terms ensuring strong cash flow starting Q3-Q4 2025
• Technology proven to reduce oil viscosity by 10% or more, improving efficiency
• Additional revenue stream from share of incremental barrels gained through flow increases
• Government backing and partnership with VIPS Petroleum as exclusive regional distributor

Negative

• Large-scale deployment carries execution and implementation risks
• Success depends on meeting strict milestones and quality benchmarks
• Company trades on OTCQB market, indicating smaller market capitalization

Multi-Billion-Dollar Program With Up To 400 Units Ordered to Modernize Crude Transport Infrastructure

TOMBALL, TX / ACCESS Newswire / June 20, 2025 / QS Energy, Inc. (OTCQB:QSEP), a leader in crude oil transport technology, has received a major order to deploy its Applied Oil Technology (AOT) across Southeast Asia and Africa. This marks a breakthrough moment for QS Energy and supports global efforts to modernize and decarbonize crude infrastructure.

DELIVERING ON A PROMISE OF INNOVATION AND SUCCESS

This initial order of five (5) AOT units launches a broader multi-phase deployment under a government-backed program with VIPS Petroleum. Valued at $25 million with the estimated expected full payment in this quarter, this order kicks off up to a $2 Billion 400-unit framework for South East Asia and Africa. The remaining 395 units will be delivered in milestone-based phases with a 50/25/25 payment structure, ensuring strong cash flow for QS Energy, commencing in Q3 and Q4 2025. AOT's proven results helped open doors with energy ministries and national oil companies. This deal is made possible by VIPS Petroleum, QS Energy's exclusive regional distributor contracted in 2024.

Cecil Bond Kyte, CEO of QS Energy, stated: "This order proves our technology's readiness to transform crude transport. With VIPS and the support of ministries and operators, we're setting a new global standard for efficiency and sustainability."

THE TECHNOLOGY TRANSFORMING CRUDE TRANSPORT

Independently validated through peer-reviewed studies, field trials, and Temple University testing, AOT tackles one of the industry's oldest problems-how to move oil more efficiently. Since the days of Rockefeller's Standard Oil, the sector has battled viscosity, drag, and energy loss. AOT reduces viscosity by 10% or more using electric fields, lowering pump pressure and energy costs. Built for tough, continuous operation, each unit undergoes strict testing to ensure long-term performance.

MADE IN AMERICA, BUILT FOR THE WORLD

QS Energy proudly designs and manufactures AOT systems in the U.S., powered by American workers. Our partners include:

• Industrial Screen and Maintenance, a manufacturer with 56+ years of experience

• Precision Urethane, a family business - urethane leader for 55+ years

• ReadyFlo, a turnkey ASME pressure vessel specialist

• Forward-MFG, experts in custom electronics and sensors

Their dedication helped make this historic deal possible.

EXPANDING GLOBAL PARTNERSHIPS AND FINANCING

This agreement positions Southeast Asia and Africa as leaders in modern crude transport and job creation. The success of this model is driving expansion talks with Australia, the Middle East, and other regions. QS Energy and VIPS Petroleum are finalizing additional deals to replicate this structure and broaden AOT deployment globally.

SECURE IMPLEMENTATION AND COMPLIANCE

QS Energy is committed to full transparency through regular updates and strict compliance with U.S., Southeast Asian, and African standards. The program is backed by milestone payments and top-tier financial guarantees, minimizing risk. Lessons from past deployments guide a robust execution plan to ensure every phase meets deadlines and quality benchmarks.

OTHER CONSIDERATIONS

QS Energy will earn a share of incremental barrels gained through AOT-enabled flow increases, creating long-term performance-based revenue.

LOOKING AHEAD

With deployment underway, QS Energy is focused on accelerating its role in the energy transition. AOT's cost savings and environmental benefits position it for major global impact.

For further information about QS Energy, Inc., click here and read our SEC filings at https://ir.qsenergy.com/sec-filings. To stay connected, subscribe to Email Alerts at https://ir.qsenergy.com/news/email-alerts to receive Company filings and press releases, and subscribe to our new QS UPDATES email service here to receive timely updates on the Company's latest news and innovations.

Safe Harbor Statement

Some of the statements in this release may constitute forward-looking statements under federal securities laws. Please click here for our complete cautionary forward-looking statement.

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 here.

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. For further information about QS Energy, Inc., visit www.qsenergy.com.

Company Contact

QS Energy, Inc.
Tel: +1 844-645-7737
E-mail: investor@qsenergy.com
Sales: sales@qsenergy.com

SOURCE: QS Energy, Inc.

View the original press release on ACCESS Newswire

FAQ

What is the value of QS Energy's (QSEP) initial AOT technology order?

The initial order is valued at $25 million for 5 AOT units, with potential expansion to a $2 billion program for 400 units total.

How does QS Energy's AOT technology improve crude oil transport?

AOT technology uses electric fields to reduce crude oil viscosity by 10% or more, lowering pump pressure and energy costs during transport.

When will QS Energy (QSEP) begin receiving payments for the AOT order?

The company expects full payment for the initial order this quarter, with additional payments structured 50/25/25 beginning in Q3-Q4 2025.

Who is QS Energy's partner for AOT deployment in Southeast Asia and Africa?

VIPS Petroleum is QS Energy's exclusive regional distributor, contracted in 2024 for the government-backed program.

What additional revenue streams will QS Energy generate from the AOT deployment?

Beyond unit sales, QS Energy will earn a share of incremental barrels gained through AOT-enabled flow increases.