Plexus wins North Sea plug and abandonment contract

Oil and gas engineering services business Plexus has won a contract valued in excess of £1.0m to provide specialised equipment and services for multiple plug and abandonment activities in the North Sea.

Plexus stated that under the terms of the contract, it will provide Exact Adjustable Surface Wellhead equipment, and specialised Centric Mudline system tooling and services for P&A operations on wells in the Dutch sector of the North Sea.

The AIM-listed group noted that operations were slated to commence in Q2 for a period of nine months.

Chief executive Ben Van Bilderbeek said: "The number of wells that must be permanently plugged and abandoned is fast growing, particularly in mature offshore locations such as the North Sea, where the OEUK indicated that decommissioning would account for 25% of oil and gas expenditure in 2023, up from 12% in 2022, and encouragingly I believe this trend will continue.

"We are therefore delighted that Plexus' reputation is strengthening within this sector, and that our range of customers is broadening. Furthermore, this contract demonstrates the progress we are making in getting back into the Adjustable Wellhead and Mudline equipment market as an established expert in this field and 'go-to' company for this type of equipment and service."

As of 1020 GMT, Plexus shares had surged 23.33% to 18.50p.

Reporting by Iain Gilbert at Sharecast.com