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, has announced its existing contract to supply wellhead and mudline equipment to Brunei Shell Petroleum Sdn Bhd has been extended by an additional 2 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.

The 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 says, “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,” adds van Bilderbeek.

Tags: Brunei Shell Petroleum Sdn Bhd, Plexus Holdings PLC