Plexus Holdings Plc Two Year Contract Extension with Shell Brunei
February 02 2017 - 2:00AM
RNS Non-Regulatory
TIDMPOS
Plexus Holdings Plc
02 February 2017
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
Equipment & Services
2 February 2017
Plexus Holdings PLC ('Plexus' or 'the Company')
Additional Two Year Contract Extension with Shell Brunei
Plexus Holdings PLC, the AIM quoted oil and gas engineering
services business and owner of the proprietary POS-GRIP(R)
friction-grip method of wellhead engineering, is pleased to
announce its existing contract to supply wellhead and mudline
equipment to Brunei Shell Petroleum Sdn Bhd ('BSP') has been
extended by an additional two years. The extension covers the
supply of both Plexus' High Pressure/High Temperature ('HPHT') and
standard pressured Wellhead and Mudline systems and services, which
are proven to be superior in terms of performance, reliability and
safety.
Today's contract is the fourth Plexus has signed with BSP and is
an extension of the current four-year framework agreement between
both parties, which commenced in late 2012 (see RNS dated 1 October
2012). Under this framework agreement, in April 2015 the Company
received purchase orders from BSP to supply both HPHT and standard
pressured wellhead systems and services for three exploration wells
in Brunei. Plexus has a long-standing relationship with BSP, having
first supplied its wellhead equipment in 2006, and importantly
remains committed to local business development where it is hoped
that Plexus can continue to recruit and train further local
employees.
Plexus CEO Ben van Bilderbeek said, "The extension of our
framework agreement with BSP validates our confidence in our
ability to maintain relationships with long term customers, and be
ready to secure orders when there is business to be won. This
belief is based on the successful application of our best in class
wellheads on over 400 exploration wells worldwide in both HPHT and
standard pressure environments by a roster of blue-chip operators
including Shell, Centrica, Statoil, and Total.
"In addition to offering operators wellhead equipment that meets
the toughest industry standards, and in particular for HPHT
application, the Company has an inventory of wellhead sets in stock
which enables us to fulfil orders at short notice. However, for our
wellheads to be fully utilised we need to see a pick-up in
exploration activity from current historic low levels.
Encouragingly, with production set to fall following the recent
OPEC meeting agreeing to cuts, demand for hydrocarbons predicted to
continue to grow, and mature fields in decline, we believe the
seeds are in place for the next cyclical upturn to take root.
Thanks to a debt free balance sheet, and despite our recent trading
update, Plexus is well placed for when sentiment recovers. While we
see the remainder of this financial year as challenging, we believe
that 2017/18 financial year will be a turning point both for Plexus
and the wider exploration industry and I look forward to providing
updates on our progress."
**ENDS**
For further information please visit www.posgrip.com or
contact:
Ben van Bilderbeek Plexus Holdings PLC Tel: 020 7795 6890
Graham Stevens Plexus Holdings PLC Tel: 020 7795 6890
Nick Tulloch Cenkos Securities PLC Tel: 0131 220 9772
Derrick Lee Cenkos Securities PLC Tel: 0131 220 9100
Frank Buhagiar St Brides Partners Ltd Tel: 020 7236 1177
Isabel de Salis St Brides Partners Ltd Tel: 020 7236 1177
NOTES:
Plexus Holdings PLC is an AIM traded oil and gas engineering and
services business, which supplies wellhead and mudline suspension
equipment together with associated equipment and services for
exploration and production applications. Based in Aberdeen, with a
presence in London, Cairo, Kuala Lumpur, Singapore and Texas, it
has developed and patented a friction-grip method of engineering
for oil and gas field wellheads and connectors, POS-GRIP(R), which
involves deforming one tubular member against another to effect
gripping and sealing.
To date, POS-GRIP wellhead systems have been used in over 400
oil and gas wells by numerous international companies. In
particular, the technology has advantages in High Pressure/High
Temperature (HPHT) and Extreme HPHT (X-HPHT) oil and gas
environments, for which there is growing global demand and where
Plexus is being increasingly recognised as the supplier of choice.
Plexus has recently successfully completed the supply of an X-HPHT
exploration wellhead to Total for the Solaris well which is
believed to be the deepest and highest pressure well ever drilled
in the North Sea.
Plexus is also extending its technology into an increasing
number of other applications:
-- In September 2015 it launched a prototype of the 'Python(TM)
Subsea Wellhead' developed as part of a Joint Industry Project in
collaboration with BG, Royal Dutch Shell, Wintershall, Maersk,
TOTAL, Tullow Oil, ENI, LR Senergy, Transocean and Oil States
Industries Inc.
-- It recently also completed a JIP in conjunction with Maersk
to develop a downhole HPHT Tieback connector which for the first
time allows the reconnection of production casing to HPHT
exploration and production wells.
-- It developed and qualified a new product called POS-SET
Connector(TM) which is designed to re-establish a connection onto
rough conductor casing previously cut above the seabed to
facilitate tieback or abandonment operations.
Having proven its POS-GRIP technology in the niche jack-up
exploration market Plexus is now focused on extending its
applications into the much larger multi-billion dollar land and
platform production well market as well as actively pursuing a
first time use of the new Python subsea wellhead into the important
subsea sector. Such strategic initiatives will be pursued both
organically and with trading partners and licencees.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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