Global energy giant ConocoPhillips is evaluating the potential of Sydney-based Biosignal's [ASX: BOS] furanone technology following a non-exclusive agreement reached by the two companies.

ConocoPhillips, the third largest integrated energy company in the US, is looking for a solution to help prevent microbiologically influenced corrosion [MIC] in the company's oil and gas infrastructure. MIC is predicted to cost the oil and gas industry over $2 billion per year.

Biosignal's compound promises to prevent the corrosion - caused by micro-organism contamination - in a more environmentally friendly manner than the current alternative, which consists of bombarding the oil and gas with corrosive chemicals.

The compound is not a biocide, which aggressively kills micro-organisms. It is based on furanones, which prevents bacteria from communicating, which in turn stops corrosive biofilm from forming.

Last week, Biosignal announced that a undisclosed animal health company was also evaluating its products.