Grant Prideco Acquires Rights to Plexus Deepwater Technology
Plexus International Ltd. has entered into a venture with Grant Prideco, Inc. for the development and marketing of its unique patented POS-GRIP™ technology, for use in deepwater exploration and production applications and for Jack-up exploration wellheads. POS-GRIP™ technology is a novel engineering method for joining and sealing between concentric members. In wellhead applications, this technology is particularly suited to supporting and sealing casing hangers and making casing, riser, pipeline or wellhead connections. The venture terms include a six million US dollar investment commitment to the Plexus technology with the objective of introducing a wide range of POSGRIP™ deepwater products and rental wellheads on a worldwide basis.
The Plexus deepwater product line will be owned and marketed by Grant Prideco through its Plexus Deepwater Technologies subsidiary and will be part of Grant Prideco's newly created Marine Division. Plexus International Ltd, through its Plexus Ocean Systems Ltd. division, has also agreed as part of the venture to provide Grant Prideco with continuing research and development support for the POS-GRIP™ technology, which includes the development of deepwater dry-tree wellhead systems, slim-bore subsea wellheads, surface and near surface BOP drilling systems and wellhead, riser and tendon connections. Ben van Bilderbeek will become Chief Executive Officer of Plexus Deepwater Technologies based in Houston, Texas, and others at Plexus will be joining the Grant Prideco deepwater team.
Ben van Bilderbeek, Chairman and Managing Director of Plexus International commented, "This agreement with Grant Prideco represents a most significant step forward in the company's efforts to be established as a provider of new and superior technology for the oil and gas industry. For a small private company, reaching the stage of acceptance as a supplier to the deepwater market requires capital and is time consuming. By joining into this venture with Grant Prideco, Plexus will benefit from the financial, marketing and technical support a large public company brings. We were very impressed with the commitment made by the senior management at Grant Prideco Inc., towards the development of proprietary marine technology and look forward to a profitable future for both companies. Plexus International Ltd. will continue to supply POS-GRIP™ drilling and completion products for the conventional field market, through its Plexus Ocean Systems Ltd. division."