Plexus Holdings Plc Four Year Framework Agreement Signed with Centrica (5925T)
January 09 2017 - 1:00AM
UK Regulatory
TIDMPOS
RNS Number : 5925T
Plexus Holdings Plc
09 January 2017
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
This announcement contains inside information
9 January 2017
Plexus Holdings PLC ('Plexus' or 'the Company')
4 Year Framework Agreement Signed with Centrica
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, known for its safety,
time and cost saving capabilities, is pleased to announce it has
signed a four year framework agreement ('the Agreement') with
Centrica Norway ('Centrica'). Under the terms of the Agreement,
Plexus will supply Centrica with surface wellhead and mudline
equipment services for jack up exploration wells of all pressure
ratings in the Norwegian sector of the North Sea.
Plexus has previously supplied Centrica with its best in class
wellhead equipment for a number of wells in the North Sea including
those on the Butch exploration and appraisal wells (now known as
the Oda projects) in the Norwegian sector between 2012 and 2014.
Under the terms of the four year Agreement, Centrica can request up
to three further one year extensions following the end of the
initial four year term.
Plexus' CEO Ben Van Bilderbeek said, "To secure a framework
agreement with a longstanding customer is in our view testament to
the excellent track record we have built up over the years,
particularly in the North Sea as a supplier of best in class
wellhead equipment to a roster of blue chip operators, including
Centrica. We have always believed that once an operator experiences
the superior qualities in terms of performance, reliability and
safety of our POS-GRIP enabled equipment out in the field for
themselves, Plexus is strongly placed to win business where there
are jack-up exploration wells to be drilled. Centrica recently
stated that 'the North Sea is a focus area and we are looking
forward to working with it under this framework agreement as new
exploration well opportunities arise'.
"While the Agreement is specifically for supplying exploration
wells in the Norwegian North Sea, we are confident that we can use
this as a platform from which we can tender for future business
with Centrica in other geographies and in other markets such as
production and subsea. Together with the recent announcements of
agreed production cuts by both OPEC and certain non-OPEC producers,
we are hopeful that the point at which supply and demand reach
equilibrium has been brought forward, and that as a result
exploration activity will soon begin to pick up from today's
historic lows. In the meantime, as today's framework agreement
demonstrates, we continue to work hard to ensure that Plexus is
well placed to hit the ground running once the exploration sector
reignites."
**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 Tel: 0131 220
PLC 9772
Derrick Lee Cenkos Securities Tel: 0131 220
PLC 9100
Frank Buhagiar St Brides Partners Tel: 020 7236
Ltd 1177
Isabel de Salis St Brides Partners Tel: 020 7236
Ltd 1177
NOTES:
Plexus Holdings PLC
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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January 09, 2017 02:00 ET (07:00 GMT)