Plexus Makes Cameron Deal
Plexus Holdings plc has announced that it has entered into a license agreement with Cameron International Limited, a Schlumberger (NYSE: SLB) group company.
The agreement grants Cameron a non-exclusive license to use the company’s POS-GRIP and HG® metal-to-metal seal method of wellhead engineering for the development of conventional and unconventional oil and gas surface wellheads.
As part of the deal, Cameron will pay a royalty to the company based on the number of wellheads sold, leased, rented or otherwise supplied in each calendar year in the range of three to six percent, which will apply up to the end of the 2029 calendar year. In addition to royalty fees, Cameron will pay the Plexus a capital license fee of $500,000 in exchange for the non-exclusive license rights.
The agreement is for an initial term of three years with the option for Cameron to extend the agreement for a further six years. It contains customary provisions permitting either party to terminate the agreement upon the occurrence of other events, including upon a material breach of the agreement.
“I am very pleased that we have entered into a non-exclusive intellectual property license agreement with Cameron, a Schlumberger company,” Plexus Chief Executive Officer Ben van Bilderbeek said in a company statement.
“The first of what we hope will be many joint development projects between our two companies will be the design and development of competitive and technically differentiating surface production wellhead systems, which incorporate our proprietary POS-GRIP friction-grip technology,” he added.
“Our joint aim is to demonstrate that with the right technology, our industry can achieve totex savings, whilst at the same time addressing capex issues, which are generally associated with the provision of the higher standards needed, whilst helping to responsibly develop oil and gas reserves,” he added.
Paul Sims, the global business director of surface production at Schlumberger, said, “we are looking forward to working with Plexus to explore the use of friction-grip technology in our wellhead systems”.
Founded in 1985, Plexus is oil and gas engineering services business and the owner of the POS-GRIP® friction-grip method of wellhead engineering. The business operates in more than 20 locations and has four global offices.
Cameron, which has been a Schlumberger company since 2016, provides wellhead, surface, and flow control products, systems, and services to oil, gas and process companies around the world. The company traces its roots back to 1920.
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