First contract for Plexus to provide relief wellhead equipment on standby
Oil and gas engineering services firm Plexus Holdings has won a £6 million Wellhead Agreement with an unnamed international oil and gas operator in the North Sea.
The Aberdeen-based firm, whose POS-GRIP wellhead technology is used all over the world, has entered into a three-year agreement to supply specialist relief well equipment on a stand-by basis.
Plexus will provide high pressure/high temperature (HP/HT) POS-GRIP adjustable wellhead equipment and mudline casing support.
Exploration firms working in the North Sea are making contingency plans in light of Total's recent gas leak at the Elgin field, which is estimated could cost the French operator upwards of £300 million in lost production.
AIM-listed Plexus said the agreement, which is subject to finalisation of contract terms, is likely to be worth in excess of £6 million with revenues starting in July 2012.
Chief executive Ben van Bilderbeek said: “We are delighted to have been awarded this contract and believe it illustrates the increasing pressure faced by oil and gas operators to follow best practice in terms of response contingency planning capability.
“This is the first contract of this kind for Plexus, where wellhead equipment will be on permanent stand-by for a customer in the event that a relief well is needed.
“As a leading supplier of superior HP/HT wellhead equipment in the North Sea market, we believe that with safety standards and regulations set to become more stringent over the coming years, this could potentially be a significant new business area for Plexus to further develop and pursue.”