Plexus Wins Contract from Brunei Shell Petroleum
Plexus Holdings has agreed with Brunei Shell Petroleum Sdn Bhd, to supply high pressure/high temperature (HP/HT) rental exploration wellhead equipment, using the Company's proprietary POS-GRIP™ technology, for a minimum of four wells. The two year project, worth over US$2.4 million, including service and support charges, commences in November 2006. The Directors believe that the initial contract, which is subject to completion of relevant contract terms, should lead to further orders both with Shell and in the region over the coming years.
This is the Company's first agreement for the supply of POS-GRIP equipment with a Shell operating company, and is an important milestone in Plexus' declared strategy of creating a new wellhead standard. The Directors believe that Plexus' POS-GRIP technology was chosen in preference to existing systems due to enhanced safety, time, and cost benefits, and that the quality of the project and the technical grounds on which the equipment was selected will further raise the profile of the POS-GRIP method.
The 15,000 psi gas service wellhead systems to be supplied to BSP are designed for high temperature service. This type of technology, which is often needed on deep, prolific production wells, fits into a sector of the market where Plexus is currently particularly active. During the critical flow testing phase of these wells, the system relies on proprietary POS-GRIP HG ™ metal seals for superior integrity.
The POS-GRIP method of engineering for wellheads and connectors involves deforming one tubular member against another to effect gripping and sealing within the elastic range, and has many advantages in dealing with the high forces associated with the HP/HT oil and gas environments for which there is increasing global demand due to the strong energy appetite and need to explore for oil and gas in ever more challenging locations.
This development further reduces the Company's dependence on the North Sea and will in the future help it avoid the ongoing impact of rig availability constraints in the North Sea, whilst further opening up the global marketplace. The winning of business in the last six months with the larger oil companies in Egypt and now Brunei bodes well for the future, and gives the Board confidence in the Company's ability to expand further a field and make progress in potentially lucrative areas such as the Gulf of Mexico.
Plexus CEO Ben van Bilderbeek said: "This is a key development for the Company as it represents our first step into Asia, and is our first contract with Shell. Importantly it provides an excellent 'shop window' within the Shell community for POS-GRIP, and is further corroboration of the particular suitability of our technology for the more unconventional and technically challenging applications. POS-GRIP provides a number of key advantages which are particularly beneficial in relation to this contract, including considerable time and cost savings and enhanced safety having undergone tests far beyond the requirement of the most stringent API standards."
Operates 27 Offshore Rigs
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Company: Plexus Holdings more info
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