Plexus confirms contract with BG International Egypt

PUBLISHED: Oct 16 2013 @ 07:26 | Comments (0) |

Plexus Holdings (LSE:POS), an AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP friction-grip method of wellhead engineering, has confirmed has been awarded a contract with BG International Egypt, a division of BG Group plc (‘BG Group’), a leading oil and gas operator in the global energy market, for the supply of its POS-GRIP wellhead technology (10,000 psi) and services for oil drilling activities offshore Egypt.

The contract is worth up to £350,000 with revenues expected to commence in the second quarter of Plexus’ 2014 financial year.

This contract win extends Plexus’ working relationship with BG Group, having previously worked together in Egypt and in the North Sea. Additionally, the board has indicated that it believes the agreement further strengthens Plexus’ presence and reputation in the region having worked with GDF SUEZ Egypt, and Shell Egypt in the country previously.

Plexus’ CEO Ben Van Bilderbeek said, “This marks a significant win for Plexus as our POS-GRIP wellhead system was chosen for this work, highlighting firstly, the safety, reliability and performance of our POS-GRIP wellhead systems, which have been supplied to over 300 wells worldwide.

“This is a truly exciting time in our Company’s development as we continue to win contracts for the supply of our niche POS-GRIP wellhead exploration rental systems for both low and high pressure oil and gas activities, and in turn increase our global reach and reputation. In addition, we are making great strides with our joint industry partner (‘JIP’) project where we are working alongside six major oil and gas companies to develop and commercialise a new ‘HGSS’ and safer subsea wellhead, utilising Plexus’ patented POS-GRIP technology.

“The JIP is progressing well and has completed the design process and we are now in the process of building test fixtures. We believe our entry into the subsea market will be a major milestone for the Company as we position Plexus over the long term as the best in class wellhead supplier across oil and gas exploration, both for surface and subsea applications” said Mr Van Bilderbeek.

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