Plexus Supplies POS-GRIP Wellhead Systems to BSP (Brunei)

Business & Finance

Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, announces a four year contract to supply wellhead and mudline equipment to Brunei Shell Petroleum Sdn Bhd (‘BSP’).

Under the terms of the contract, which are subject to finalisation, Plexus will supply both High Pressure/High Temperature (‘HP/HT’) and standard pressured Wellhead and Mudline systems and services, using the Company’s proprietary POS-GRIP technology, for a multi-well exploration programme in Brunei. The value of the initial contract is estimated to be worth approximately GBP£2 million over the next 18 months dependant on the number of wells drilled. Revenues commence in October 2012.

The exploration drilling programme will initially utilise Plexus’ HP/HT 18-3/4″ wellhead equipment for exploration purposes at a variety of pressures and will also provide the ability to run mudline equipment if necessary without the need for additional equipment. This is the third contract signed with BSP and is an extension of the current four year framework agreement, which was preceded by the first two year agreement announced on 6 June 2006. At the time, this represented the first agreement for the supply of POS-GRIP wellhead equipment with a Shell operating company.

In response to this new contract with BSP and also to support the Company’s growing presence in the region, a new local company subsidiary, Plexus Ocean Systems (Brunei) Sdn Bhd, has been incorporated. Plexus hopes that this initiative will demonstrate the extent of its commitment to its customers in the region and will generate additional business opportunities in the future.

Plexus CEO Ben van Bilderbeek said, “There is no better vote of confidence in the quality, safety, and operational advantages of our POS-GRIP wellhead equipment than a follow up contract with a leading oil and gas operator. Since the first contract with BSP was signed in 2006, we have further developed our relationship with Royal Dutch Shell, with whom, along with a number of other major companies operating in the sector, we are currently collaborating with in the development of a new pioneering subsea wellhead design Joint Industry Project. This forms part of our wider strategy to expand the reach of our proven, patented technology, both in terms of geography and product range, both surface and subsea. In the meantime, as today’s contract shows, considerable opportunities to supply our wellhead equipment to the oil and gas industry remain and, as our reputation and track record grows, I expect to report further contract wins in due course.”

[mappress]
Press Release, October 01, 2012