Plexus Holdings adds more contract wins

By Amy McLellan

Another month, another contract win for specialist wellhead company Plexus Holdings. The AIM-quoted company, which has developed a proprietary technology known as POS-GRIP, that delivers a safer, more reliable and cost-effective wellhead solution, has won two contracts in May – so far – with the most recent being a £1.25 million contract with Maersk Oil for an offshore well in the Danish sector of the North Sea. This is the company’s third order from Maersk Oil in Denmark in a little over a year.

Earlier in the month, the £189 million market cap company won a £1 million contract with Premier Oil Norge for an exploration well in the Norwegian Central North Sea. Again, this builds on a long-standing client relationship, with Plexus having first supplied its wellhead equipment to Premier Oil Norge in 2010.

Plexus CEO Ben Van Bilderbeek said “winning repeat business from existing customers reflects the operational and safety benefits our proprietary POS-GRIP based wellhead equipment offers”.
He also noted that that the time and cost savings offered by the technology is a real attraction for operations in the current price volatility. “Plexus’ equipment therefore allows operators to accommodate the twin pressures facing the industry today, namely increased regulatory oversight and tighter management of costs,” said Van Bilderbeek.

While the North Sea has long been a Plexus stronghold, in April the company extended its geographic reach, winning its first contract in South America. The contract is with Cardon IV, a gas licence granted by the Ministry of Petroleum and Mines of Venezuela to Eni Venezuela and Repsol Venezuela.

Plexus will supply mudline suspension equipment services for a development well on the Perla field offshore Venezuela under a contract that will generate revenues of US$0.8 million. Plexus’ system was selected due to the fast response delivery time offered by Plexus under a new manufacturing initiative, whereby raw material is held to allow immediate manufacture.

With this contract win the company’s geographic reach now spans five continents including Europe, Asia, Oceania and Africa. “We have already established Plexus as the go-to provider of wellhead equipment for high pressure/high temperature wells particularly in the North Sea market,” said the Plexus founder.

“Having proven the superiority of our equipment in what is one of the most challenging operating conditions in the world, we are focused on replicating this success, as this latest contract demonstrates, at the global level, as we look to build Plexus into a leading global oil and services company.”