Plexus lands $600,000 wellhead contract in Oman

Oil and gas technology group Plexus Holdings has won a contract in Oman worth about $600,000 (£420,000).

Plexus Holdings chief executive Ben van Bilderbeek

Under the deal, the Aberdeen-based firm will supply explorer Masirah Oil with its Pos-Grip wellhead system, designed to prevent the type of blowout behind the 2010 Gulf of Mexico disaster that killed 11 people.

Work will begin next month, initially for one well, but Plexus said a further two wells could be drilled depending on results.

The contract falls under the territory of the Aim-quoted company’s recently appointed Chinese licencing partner, Jereh, and Cenkos analyst Ian McInally said: “This is extremely welcome news as it not only marks the first move into the Middle East through Jereh, it again serves to highlight the competitive advantage of Pos-Grip technology.”

McInally added: “The parlous state of the oil and gas sector and prevailing oil prices has focused attention on balance sheet risk across the industry with a view to survival and weathering the storm rather than near-term earnings. With that in mind Plexus is in a relatively comfortable position with forecast net cash to year-end June of £4.8 million.”

Plexus chief executive Ben van Bilderbeek said: “This new contract in a new territory with a new customer represents another step in achieving our strategy of global expansion for Plexus and the development of our suite of Pos-Grip wellhead products at a time when the North Sea is under extreme pressure from the fall in oil prices.”

He added: “The safety and time savings of Pos-Grip were evaluated against traditional slip and seal systems and the enhanced safety delivered by Plexus’ mudline systems and surface hangers with installation through the blowout preventer, was a major consideration in our favour, as well as equipment being more economically competitive when time savings were evaluated. In addition Plexus’ proven track record for support and responsiveness during the tender process was another key selling point which was acknowledged.”