10th Feb 2014 09:14
LONDON (Alliance News) - Plexus Holdings PLC Monday said it has achieved a three-year contract renewal for the supply of its POS-GRIP wellhead equipment to Wintershall Noordzee BV.
The Aberdeen-based, AIM-quoted oil and gas engineering services business said details for the final renewal contract are still being completed but that under the new deal, it will initially supply its 10,000-pounds-per-square-inch of pressure POS-GRIP wellhead systems for two wells.
The company said the revenues of the initial renewal contract are expected to commence in the fourth quarter of the financial year 2014.
The Dutch company Wintershall is a leading oil and gas company using surface wellhead and mudline equipment services for its exploration activities.
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.
"We believe due to the increased level of activity in the Dutch North Sea region, this renewed contract will bring further wellhead supply opportunities for both our standard pressure, and potentially for the first time High Pressure/High Temperature wellhead rental supply," Plexus' Chief Executive Officer Ben Van Bilderbeek said in a statement.
Plexus shares were untraded at 255.25 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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