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Plexus Holdings bags £1.4mln sale from Russian partner

'Russia represents a major opportunity for the company'
Jack-up oil rig
Kits will be deployed on jack-up rigs

Plexus Holdings PLC (LON:POS) has sold two POS-GRIP rental wellhead sets to Russian partner Gusar for about £1.4mln.

The kits will be rented out for gas exploration within the Russian Federation under the agreement signed in 2016 between Gusar and Konar, two independent Russian oil and gas equipment manufacturers.

READ: Plexus completes sale of jack-up business and inks collaboration with Technip

Gusar agreed to buy up to three POS-GRIP Wellhead Systems to establish its rental fleet and expects shortly to receive its first rental order from a major local operator. This may lead to the purchase of a third wellhead in due course, said Plexus. 

The licence also allows it to manufacture POS-GRIP Wellhead Systems, while Plexus earns royalties on products rented or sold by either Gusar or Konar.  

This latest two wellhead sets of equipment are expected to be deployed on jack-up gas exploration wells, which is permissible under current EU trade sanctions. 

READ: Plexus Holdings looking forward to new post-disposal position as IP and licensing business

Plexus recently sold the bulk of its jack-up rig business to French group Technip for £42.5mln, but this deal allowed it to continue to do business in the Russian Federation through the agreement with Gusar and Konar.

Ben Van Bilderbeek, Plexus’ chief executive, said:As evidenced by its successful deployment on numerous wells in the North Sea, our technology and HG metal sealing are ideally suited to the high pressures and temperatures - and hence environmental risks - associated with gas. 

"As a result, Russia represents a major opportunity for the company.”

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