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Plexus says oil and gas have key role for long term

Plexus sees opportunities ahead

Oil and gas company boss Jeffrey Thrall says the industry is likely to be part of the world’s energy mix for longer than some have been forecasting.

Mr Thrall chair of the Aberdeen-based engineering services company Plexus Holdings, said the UK government’s new focus on domestic supplies will have long term benefits for the company and the sector.

Approval for new oil and gas projects will be followed by other initiatives designed to increase output from the North Sea.

In a statement with the company’s half-year figures, he said: “Despite current aspirations, hydrocarbons have a role to play in the transition to NetZero and are likely to remain an important part of the world’s energy mix for much longer than some pundits had predicted.

“These challenges have of course been sadly magnified by the war in Ukraine, and the realisation that Europe’s dependence on Russian oil and gas is not strategically sensible or acceptable.

“For oil services companies such developments point to a better future than many would liked to have believed, and is evidenced by a recent green light given by the Government for six North Sea oil and gas projects to proceed later this year.

“Further, the Prime Minister has just announced the setting up of an energy task force headed up by two industry experts to boost the UK’s oil and gas supplies which will include the North Sea.”

Chief executive Ben van Bilderbeek added: ‘New oil and gas exploration and production drilling activities are increasing, oil is back at record prices and meeting ESG requirements is no longer optional, with regulation and investor sentiment becoming ever more rigorous.

“If they are to survive, companies will also need to explore alternative options to reach NetZero such as carbon capture and storage and the use of depleted formations, and geothermal power where Plexus is assessing ways in which its technology can be adapted to deliver unique solutions.

“I am increasingly confident that Plexus has reached a tipping point that positions us well to rebuild significant value to shareholders over the next 18 months.”

The AIM-quoted oil and gas engineering services business, posted a standstill loss before tax of £1.95m (2020: £1.99m loss).

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