TIDMPOS
RNS Number : 9635O
Plexus Holdings Plc
13 August 2014
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
13 August 2014
Plexus Holdings PLC ('Plexus' or 'the Company')
Asia Expansion Strategy Update - Formation of a New Malaysian
Joint Venture Company to Pursue Asian Region Business
Opportunities
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, announces that its
subsidiary Plexus Ocean Systems (Singapore) PTE. LTD has completed
the formation of a new Malaysian Joint Venture ('JV') company
Plexus Products (Asia) Sdn Bhd ('PPA') in conjunction with a local
Malaysian oil and gas partner, Integrated Petroleum Services Sdn
Bhd ('IPS').
The establishment of PPA in Malaysia is a key milestone in
Plexus' strategy to create a fully operational Asian business hub
to increase the supply of its pioneering POS-GRIP wellhead
equipment and services to the important and vibrant Australian,
Brunei, Indonesian, Malaysian, Thai, and Singaporean oil and gas
exploration and production markets.
Importantly, IPS is a well renowned upstream support services
business to the offshore oil and gas industry in Malaysia and the
Asian Pacific region with in-house manufacturing capabilities. It
is expected that PPA will benefit from the strong regional network
and relationships of IPS as it seeks to obtain the local licences
required to enable the supply of Plexus POS-GRIP wellhead
equipment.
Over the past few years Plexus has successfully secured
contracts with blue chip IOCs and NOCs in the Asian and Oceania
regions such as Apache Energy Australia, eni Australia Ltd.,
Petronas, Santos Ltd., Shell Brunei, and Shell China. The Plexus
Board believes that PPA will augment Plexus' recently established
Singaporean regional HQ and services base, where Plexus Singapore
has access to valve products which complement its wellhead
equipment, and which enables Plexus to provide an enhanced product,
servicing, and marketing service to the important Asian and Oceania
oil and gas markets.
Plexus CEO Ben Van Bilderbeek said, "It is our vision to create
a significant Asian business hub in Singapore which, together with
the new Malaysian PPA entity, will service the Asian and Oceania
regions. The new JV will allow us to build on our established
operational presence in the region which will mirror our flagship
and highly successfully head-quarters in Aberdeen, where we have
been successful in introducing our POS-GRIP wellhead equipment and
now enjoy a leading market position in the Scottish and Norwegian
North Sea. The ambition of PPA is to become a pivotal supplier to
the oil & gas industry in Malaysia and its first initiative
will be to initiate the process of securing necessary local
wellhead equipment supply licences.
"This is an exciting period for Plexus. In tandem with expanding
our geographic presence for the supply of our best in class High
Pressure/ High Temperature and standard pressure POS-GRIP wellhead
solutions predominantly in the jack up exploration arena, we are
also committed to extending our offering through new innovative
product development. One such initiative is our new and safer
wellhead HGSS subsea wellhead JIP which we are developing alongside
six other oil and gas majors to deliver the next generation subsea
wellhead. When considered together with our growing profitable
rental wellhead supply business, where we continue to win contracts
with various oil and gas majors worldwide, I believe Plexus is well
positioned for significant news-flow for 2014 and beyond and I look
forward to updating shareholders on our progress in due
course."
**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
Derrick Lee Cenkos Securities PLC Tel: 0131 220
9100
Alan Stewart Cenkos Securities PLC Tel: 0131 220
9774
Felicity Edwards St Brides Media & Finance Tel: 020 7236
Ltd 1177
Frank Buhagiar St Brides Media & Finance Tel: 020 7236
Ltd 1177
Notes to Editors:
Plexus Holdings PLC, which began trading on AIM in December
2005, is an oil and gas engineering and services business, which
supplies wellhead and mudline suspension equipment for exploration
and production applications. Based in Aberdeen, with offices in
London, Cairo, Kuala Lumpur and a presence in Houston, 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.
The Company plans to accelerate the roll out of POS-GRIP
wellhead equipment as a superior alternative to current technology
and for it to become the future industry standard for wellhead
design. In particular, the technology has advantages in High
Pressure/High Temperature (HP/HT) and Extreme HP/HT (X-HP/HT) oil
and gas environments, for which there is growing global demand and
where Plexus is being increasingly recognised as the supplier of
choice. Importantly, the Company is focussed on extending its
proprietary technology into an increasing number of subsea
applications. In line with this, in March 2011 the Company launched
an initiative to develop a new subsea wellhead design, HGSS(TM),
utilising its friction-grip technology in collaboration with key
oil and gas operators and service companies. Royal Dutch Shell,
Wintershall, Maersk, Tullow Oil, ENI, Oil States Industries Inc.,
TOTAL and the UK entity of the world's largest offshore drilling
company have joined the initiative to date. The HGSS subsea
wellhead design will include a combination of key features never
before seen in a subsea wellhead which include being rated to
15,000 psi, 4,000,000 pounds of 'instant' casing lockdown capacity,
annulus pressure monitoring and access for 'bleed off' capability
to address sustained casing pressure ('SCP') issues which are
recognised by the API as a serious industry problem, and rigid
metal annular seal technology qualified to match the performance of
premium casing. The design process has now been completed, and
prototype testing is due for completion mid 2014.
To date, POS-GRIP wellhead systems have been used or selected to
be used in over 300 oil and gas wells by international companies
including AGR, Apache Energy Australia, BHP Billiton, BG
International, Bowleven plc, BP, Brunei Shell Petroleum, Cairn
Energy, Centrica, ConocoPhillips, Dana Petroleum, Dubai Petroleum,
GDF SUEZ, Global Santa Fe, Maersk, Niko Resources, Petro-Canada
Trinidad & Tobago, Red Sea Petroleum Operating Company, Repsol,
RWE, Senergy Limited, Shell Egypt, StatoilHydro, Silverstone
Energy, Talisman Energy, Tullow Oil, and Wintershall
This information is provided by RNS
The company news service from the London Stock Exchange
END
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