New milestone for oil firm
Plexus seals £1.4m wellhead sale to Russian partner
Ben Van Bilderbeek: sale is a key step
Plexus Holdings, the AIM-quoted wellhead engineering company, has sold two wellhead sets and associated equipment and tooling to its Russian partner Gusar in a deal worth £1.4m.
The wellheads will be used for gas exploration drilling within the Russian Federation under the exclusive licence agreement between Plexus and Gusar and CJSC Konar, two independent Russian oil and gas equipment manufacturers.
The sale represents a major milestone towards delivering on one of Plexus’ objectives in positioning itself in one of the top three hydrocarbon producers in the world with significant gas reserves.
Plexus entered into the licence agreement in January 2016, conferring Gusar and Konar the right to manufacture and rent Plexus’ proprietary jack-up exploration wellhead and associated equipment within the Russian Federation and the other CIS states.
Plexus will receive royalties based on the invoice value of any Plexus products rented or sold by Gusar or Konar. The two wellhead sets of equipment sold to Gusar as part of the sale are expected to be deployed on jack-up gas exploration wells, which is permissible under current EU trade sanctions.
Plexus’ CEO Ben Van Bilderbeek said, “The sale of these two wellhead sets is a key step towards Gusar securing a landmark first rental order from a local Russian gas operator for our POS-GRIP wellhead equipment.
“Post the sale of our Jack-up Business to FMCT, alongside the development and roll-out of POS-GRIP enabled products in other areas of the energy industry such as subsea, production and renewables, Russia and the wider region is a central area of focus, not only because it is a top three global hydrocarbon producer, but also due to the importance of gas in its energy mix.
“I am very pleased to see our belief in this market coming to fruition.”