Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services
9 January 2017
Plexus Holdings PLC ('Plexus' or 'the Company')
Four Framework Agreement Signed with Centrica
Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, known for its safety, time and cost saving capabilities, is pleased to announce it has signed a four year framework agreement (‘the Agreement') with Centrica Norway (‘Centrica'). Under the terms of the Agreement, Plexus will supply Centrica with surface wellhead and mudline equipment services for jack up exploration wells of all pressure ratings in the Norwegian sector of the North Sea.
Plexus has previously supplied Centrica with its best in class wellhead equipment for a number of wells in the North Sea including those on the Butch exploration and appraisal wells (now known as the Oda projects) in the Norwegian sector between 2012 and 2014. Under the terms of the four year Agreement, Centrica can request up to three further one year extensions following the end of the initial four year term.
Plexus' CEO Ben Van Bilderbeek said, “To secure a framework agreement with a longstanding customer is in our view testament to the excellent track record we have built up over the years, particularly in the North Sea as a supplier of best in class wellhead equipment to a roster of blue chip operators, including Centrica. We have always believed that once an operator experiences the superior qualities in terms of performance, reliability and safety of our POS-GRIP enabled equipment out in the field for themselves, Plexus is strongly placed to win business where there are jack-up exploration wells to be drilled. Centrica recently stated that ‘the North Sea is a focus area and we are looking forward to working with it under this framework agreement as new exploration well opportunities arise'.
“While the Agreement is specifically for supplying exploration wells in the Norwegian North Sea, we are confident that we can use this as a platform from which we can tender for future business with Centrica in other geographies and in other markets such as production and subsea. Together with the recent announcements of agreed production cuts by both OPEC and certain non-OPEC producers, we are hopeful that the point at which supply and demand reach equilibrium has been brought forward, and that as a result exploration activity will soon begin to pick up from today's historic lows. In the meantime, as today's framework agreement demonstrates, we continue to work hard to ensure that Plexus is well placed to hit the ground running once the exploration sector reignites.”
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