Plexus Bags Gazprom Contract Via Gusar
Aberdeen-based oil well technology firm Plexus Holdings said its Russian licensee Gusar had clinched its first major contract to supply gas exploration equipment to Gazprom.
The contract covered the first year of an up to five-year jack-up gas exploration drilling programme on the Kara Sea Shelf.
Under the terms of a 2016 licence agreement with Gusar, Plexus would receive a licence royalty of 20% based on the invoice value of Plexus products rented or sold.
In addition, a further 20% royalty of the invoice values of te 2019-2020 contract with Gazprom would apply.
"Today's contract announcement represents a significant milestone towards establishing Plexus' best in class gas proof POS-GRIP equipment in Russia and the CIS, one of the top three hydrocarbon producers in the world with significant gas reserves," the company said.
Due to the importance of gas in its energy mix, Russia represents a key market for Plexus as its friction grip technology and HG metal sealing have been proven to be ideally suited to the high pressures and temperatures associated with gas.
Plexus' CEO Ben Van Bilderbeek said, "This is the breakthrough rental wellhead order that both Gusar and Plexus have been working towards since we signed the Licensing Agreement in January 2016. As the holder of the world's largest natural gas reserves, Gazprom is the latest major operator set to join the likes of BP, Centrica (CPYYY), ConocoPhillips (COP), eni, Royal Dutch Shell (RYDAF), and Total on the long list of operators that have used our proprietary POS-GRIP technology around the world. We are therefore anticipating that today's order will prove to be the first of many, not just for Gazprom, but in time from other companies operating in the CIS market."