Plexus Holdings has entered into a new four-year contract with Brunei Shell Petroleum Sdn Bhd ('BSP') for the supply of its proprietary POS-GRIP® wellheads and TRT-S mudline suspension equipment, together with service and support. The contract, which is on a well to well call-off basis, has an initial value of approximately £800,000 and commences in the second half of the financial year with the supply of wellheads for two wells, one of which is high pressure/high temperature ('HP/HT').
This is the Company's second agreement with BSP and demonstrates an ongoing and developing supply relationship with a major operator in South East Asia, which can now be supported by our full time sales and operational presence in Malaysia. The contract will help Plexus to further establish its reputation in the region, and follows on from a recent contract win with Shell Egypt.
Plexus CEO Ben van Bilderbeek said, "We are pleased to secure this four year extension of a previous two-year contract with BSP, one of the major operators in South East Asia. The nature of the new contract, together with the recent license awarded by PETRONAS Nasional Berhad to Plexus, allows our company to supply wellhead equipment in Malaysia and create an opportunity to expand the reach of the new agreement.
"In addition, Plexus continues to focus on high pressure gas exploration drilling associated with long-term strategic production developments within the oil and gas arena. These projects are likely to benefit from lower rig rates, driven by lower oil prices, which we believe will lead to additional demand for our range of HP/HT POS-GRIP wellhead equipment."