Plexis Holdings gets another order from Russian licensee

Oil and gas engineering services company Plexus Holdings announced on Wednesday that its Russian licensee, Gusar, has placed an order for an additional set of ‘POS-GRIP’ exploration rental jack-up drilling wellhead equipment.

The AIM-traded firm said the purchase by Gusar was in response to “encouraging discussions” between Gusar and its customers, following the successful installation of the first POS-GRIP rental gas exploration wellhead in Russia for Gazprom.

Pricing for the equipment was at market rates, with payment to be in cash.

Plexus said the purchase of additional wellhead equipment for its rental inventory increased Gusar's capacity to service a higher number of contracts in Russia and the Commonwealth of Independent States markets, and reflected Gusar's confidence in the Russian gas jack-up drilling exploration market.

As one of the three largest gas producers in the world with significant reserves, the company said Russia represented a “major market opportunity” for POS-GRIP wellhead equipment via its licence agreement with Gusar.

“The acquisition of additional POS-GRIP exploration wellhead equipment by our licensee Gusar, so soon after the successful installation of the first POS-GRIP wellhead for major Gazprom, is highly encouraging and bodes well for Gusar securing further orders in Russia,” said Plexus chief executive officer Ben Van Bilderbeek.

“Similarly, we believe the strategic decision taken by our partner to expand its inventory is a further sign of Gusar's confidence as it looks to develop and build the Russian market for POS-GRIP equipment.

“With this in mind, we continue to support our partner's efforts to establish POS-GRIP technology in Russia as a new standard and benchmark in terms of reliability and integrity, as well as its ability to deliver substantial operational cost savings.”

Van Bilderbeek said that, with the world moving towards “net zero solutions”, POS-GRIP's leak-proof capabilities were becoming more relevant.

“This is particularly relevant for Russia being a top three global hydrocarbon producer, and means that the Gusar licence has the potential to become a major income generator for Plexus, and in turn an important component of our portfolio of diversified revenue streams based around our suite of POS-GRIP products for the wider energy industry, which we are looking to grow.”

Gusar's general director Alexander Beryozkin added that the firm was “pleased” with the relationship it was developing with a range of Russian operators, particularly Gazprom.

“In particular, we are encouraged by the interest being shown in upgrading exploration drilling methods and equipment by deploying POS-GRIP wellhead equipment to gain access to Plexus' unique sealing capabilities and operational efficiencies.

“Following the successful completion of the 2019 POS-GRIP equipment and services order for Gazprom, we look forward to building on this important milestone and deepening the dialogue with the Russian industry at large,” Beryozkin added.

“There is no question that Russia should play an active role in curbing the world's carbon and methane emissions, and we believe that POS-GRIP technology stands to advance these efforts at the well site.”

At 1335 GMT, shares in Plexus Holdings were down 5.09% at 25.15p.