Plexus Holdings Plc Russian Licensee Awarded Contract by Gazprom (6614R)
04 Marzo 2019 - 1:00AM
UK Regulatory
TIDMPOS
RNS Number : 6614R
Plexus Holdings Plc
04 March 2019
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
Equipment & Services
This announcement contains inside information
Plexus Holdings PLC ('Plexus' or 'the Company')
Russian Licensee Awarded Gas Exploration Drilling Contract by
Gazprom
Highlights
-- First major contract for POS-GRIP rental exploration wellhead
equipment secured by Russian licensing partner with global energy
giant Gazprom
-- Covers the first year of a five-year jack-up gas exploration
drilling programme which provides additional revenue stream for
Plexus under existing Licence Agreement
-- Breakthrough order in what is a key market for Plexus
following sale of niche wellhead exploration equipment and services
business for Jack-up applications to TechnipFMC subsidiary
('TFMC')
Plexus Holdings PLC, the AIM quoted oil and gas engineering
services business and owner of the proprietary POS-GRIP(R)
friction-grip method of wellhead engineering, is pleased to
announce its Russian licensee, LLC Gusar ('Gusar'), has secured its
first major contract to supply POS-GRIP rental wellhead gas
exploration equipment to Gazprom, the global energy giant.
The contract covers the first year of an up to five-year jack-up
gas exploration drilling programme on the Kara Sea Shelf at shallow
water depths of less than 150 metres, and carries rental rates
similar to the ones historically achieved in the UK Continental
Shelf. Under the terms of the 2016 Licence Agreement with Gusar,
Plexus will receive a licence royalty of 20% based on the invoice
value of Plexus products rented or sold. In addition, under the
terms of an additional Royalty Agreement entered into with Gusar at
the time of the recent share buy back transaction, a further 20%
royalty of the invoice values of this 2019-2020 contract with
Gazprom will apply. The two POS-GRIP 18-3/4" rental wellhead sets
Gusar recently purchased from Plexus for circa GBP1.6m will be used
on the first well of the programme, which is due to spud in the
second quarter of 2019.
Today's contract announcement represents a significant milestone
towards establishing Plexus' best in class gas proof POS-GRIP
equipment in Russia and the CIS, one of the top three hydrocarbon
producers in the world with significant gas reserves. Due to the
importance of gas in its energy mix, Russia represents a key market
for Plexus as its friction grip technology and HG(R) metal sealing
have been proven to be ideally suited to the high pressures and
temperatures associated with gas.
As announced last year, Gusar will also supply under the
contract the Tersus(TM) TRT Mudline Suspension System ('MLS')
equipment, which provides important environmental, operational and
safety advantages. The winning of this order by Gusar with Gazprom
represents the culmination of three years of effort to enter this
important gas market, and Plexus and Gusar will continue to work
together on developing further business opportunities in the
region.
Plexus' CEO Ben Van Bilderbeek said, "This is the breakthrough
rental wellhead order that both Gusar and Plexus have been working
towards since we signed the Licensing Agreement in January 2016. As
the holder of the world's largest natural gas reserves, Gazprom is
the latest major operator set to join the likes of BP, Centrica,
ConocoPhillips, eni, Royal Dutch Shell, and Total on the long list
of operators that have used our proprietary POS-GRIP technology
around the world. We are therefore anticipating that today's order
will prove to be the first of many, not just for Gazprom, but in
time from other companies operating in the CIS market.
"This initial contract between Gusar and Gazprom will provide us
with our first Gusar licence royalty revenue stream. Together with
our cash rich balance sheet and the remaining earn out period and
Collaboration Agreement with TFMC for existing and new POS-GRIP IP
applications outside of jack-up exploration, we are strongly placed
to advance our objective of establishing POS-GRIP as the enabling
gas-proof technology for the wider energy sector including
production and subsea applications, and decommissioning and
renewables markets."
Gusar's General Director Alexander Beryozkin said, "Gazprom has
welcomed Plexus' technology introduced by us as the local supplier.
Working in Arctic conditions dictates the need for the highest
standards of safety and reliability. Having carefully considered
the existing conventional alternatives, Gazprom has ruled in favour
of POS-GRIP technology that has been repeatedly chosen by industry
leaders for complex jack-up exploration wellhead drilling
programmes around the world due to the technical advantages that
POS-GRIP avails."
Further Information
Following the completion of the disposal of its wellhead
exploration equipment and services business for Jack-up
applications (the 'Jack-up Business') to TFMC, Plexus retained the
right to pursue jack-up exploration related business in Russia and
the CIS via the Licence Agreement. Please see the announcement of
26 January 2016 for further information on the Licence Agreement,
which grants Gusar and Konar the right to manufacture and rent
Plexus' proprietary jack-up exploration equipment within the
Russian Federation and the other CIS states.
**ENDS**
For further information please visit www.posgrip.com or
contact:
Ben van Bilderbeek Plexus Holdings PLC Tel: 020 7795 6890
Graham Stevens Plexus Holdings PLC Tel: 020 7795 6890
Derrick Lee Cenkos Securities PLC Tel: 0131 220 9100
Frank Buhagiar St Brides Partners Ltd Tel: 020 7236 1177
Isabel de Salis St Brides Partners Ltd Tel: 020 7236 1177
NOTES:
AIM-traded oil and gas engineering services company Plexus (AIM:
POS) is an IP-led company that has developed a range of products
and applications based on its patent-protected POS-GRIP
friction-grip technology. Having proved the superior qualities of
POS-GRIP within the jack-up wellhead exploration market through the
sale of this business to FMC Technologies Limited, a subsidiary of
TechnipFMC (Paris:FTI, NYSE:FTI) (jointly "TFMC"), in early 2018,
the Company is now focused on establishing its technology and
equipment in other markets including surface production wellheads,
subsea and de-commissioning.
Its suite of ongoing products and applications include: "HG"(TM)
Wellheads, which combine POS-GRIP Technology with Gas Tight metal
sealing; the Python(R) Subsea Wellhead (a new standard for subsea
wellheads - developed in a JIP supported by Royal Dutch Shell, BG
(now owned by Shell), Wintershall, Total, Maersk (now owned by
Total), Tullow Oil, eni, Senergy (now Lloyds register), and Oil
States Industries Inc); the POS-SET(TM) Connector for the growing
de-commissioning and abandonment market; and Tersus-PCT, an
innovative HP/HT Tie-Back connector product. Importantly, the
Company also has a Collaboration Agreement with TFMC, which
provides a platform to further develop and commercialise these and
other applications based on its POS-GRIP technology.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
CNTQFLFBKXFEBBV
(END) Dow Jones Newswires
March 04, 2019 02:00 ET (07:00 GMT)
Plexus (LSE:POS)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Plexus (LSE:POS)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024