12th Feb 2014 10:16
LONDON (Alliance News) - Plexus Holdings PLC Wednesday said it has been awarded a contract with Maersk Group to supply wellhead equipment services for an exploration well in the North Sea.
The AIM-quoted oil and gas engineering services business said the value of the contract, with Maersk Oil's Danish business unit, is roughly GBP1.1 million, with revenues expected to commence in June.
Under the terms, Plexus will supply its POS-GRIP systems for use on a standard pressure exploration well, and Maersk has the option to secure Plexus' equipment for a further well.
The POS-GRIP method of engineering deforms one tubular section against another. When one tube is run inside another in a well, a gradually tightening ring is clamped around the outside. The outer tube is forced onto the inner tube, and the resulting friction removes all movement from the system.
Plexus has been working with Maersk, among a team of oil and gas companies, to develop a subsea version of its POS-GRIP technology and a spokesman for the company told Alliance News that an announcement should be made on the project shortly.
The news comes days after Plexus announced a three-year contract renewal for the supply of its POS-GRIP wellhead equipment to Wintershall Noordzee BV, which will initially see the POS-GRIP technology used on two wells in the Dutch North Sea.
"As evidenced by the continued flow of new orders we are receiving, operators are increasingly recognising the virtues of using our wellhead equipment not just in terms of the performance, reliability and safety features, but also the time and cost savings our technology offer," Chief Executive Officer Ben van Bilderbeek said in a statement.
Plexus Holdings shares were up 2.0% to 288.00 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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