4th May 2016 07:24
LONDON (Alliance News) - Plexus Holdings PLC Wednesday said an existing customer operating offshore Norway has placed another order for the London-listed company's equipment to drill an exploration well.
It is the ninth order to be made by Det norske oljeselskap ASA since 2012, and Plexus will supply surface wellhead and mudline equipment services for the Langfjellet standard pressure exploration well on the Norwegian Continental Shelf under the deal.
The deal is worth around GBP600,000 to Plexus and revenue should start to be recognised in August this year.
Specifically, Plexus will supply 18-3/4" 15M surface wellhead and mudline system and the well will be drilled using the Maersk Interceptor Jackup class rig, which is expected to take around 40 days.
"Whilst global markets, including Russia and China, are expected to play a key role in Plexus' growth strategy, our dominant position in the North Sea jack-up exploration sector and its scope for generating future business opportunities should not be ignored in view of the many billions of barrels of oil and gas equivalent that are still to be extracted," said Chief Executive Ben Van Bilderbeek.
"We value Det norske's business and hope to be working with them in the North Sea for many years to come as we continue to position ourselves throughout the current down cycle to become a leading supplier of superior, best in class wellhead and mudline suspension equipment for exploration and production applications across the world," he added.
Plexus shares were trading up 2.1% to 64.82 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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