Plexus Holdings PLC: Additional POS-GRIP® Wellhead Equipment Sale to Russian Licensing Partner

Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, is pleased to announce that its Russian licensee, LLC Gusar (‘Gusar’), has placed an order for an additional set of POS-GRIP® exploration rental jack-up drilling wellhead equipment. This purchase by Gusar is in response to encouraging discussions between Gusar and its customers following the successful installation of a first POS-GRIP rental gas exploration wellhead in Russia for Gazprom (see announcement of 24 September 2019 for further details).  Pricing for the equipment was at market rates and payment will be in cash.

This purchase of additional wellhead equipment for its rental inventory increases Gusar’s capacity to service a higher number of contracts in Russia and the CIS markets, and reflects Gusar’s confidence in the Russian gas jack-up drilling exploration market.  As one of the three largest gas producers in the world with significant reserves, Russia represents a major market opportunity for POS-GRIP wellhead equipment via its Licence Agreement with Gusar (see announcement of 26 January 2016 for further information on the Licence Agreement).

Plexus’ CEO Ben Van Bilderbeek said: “The acquisition of additional POS-GRIP® exploration wellhead equipment by our licensee Gusar, so soon after the successful installation of the first POS-GRIP wellhead for major Gazprom, is highly encouraging and bodes well for Gusar securing further orders in Russia. Similarly, we believe the strategic decision taken by our partner to expand its inventory is a further sign of Gusar’s confidence as it looks to develop and build the Russian market for POS-GRIP equipment. With this in mind, we continue to support our partner’s efforts to establish POS-GRIP technology in Russia as a new standard and benchmark in terms of reliability and integrity, as well as its ability to deliver substantial operational cost savings.

“With the world moving towards Net Zero solutions, POS-GRIP’s leak-proof capabilities have never been more relevant, or indeed essential. This is particularly relevant for Russia being a top three global hydrocarbon producer, and means that the Gusar Licence has the potential to become a major income generator for Plexus, and in turn an important component of our portfolio of diversified revenue streams based around our suite of POS-GRIP products for the wider energy industry, which we are looking to grow.”

Gusar’s General Director Alexander Beryozkin said, “We are pleased with the relationships we our developing with a range of Russian operators, particularly Gazprom.  In particular, we are encouraged by the interest being shown in upgrading exploration drilling methods and equipment by deploying POS-GRIP wellhead equipment to gain access to Plexus’ unique sealing capabilities and operational efficiencies. Following the successful completion of the 2019 POS-GRIP equipment and services order for Gazprom, we look forward to building on this important milestone and deepening the dialogue with the Russian industry at large. There is no question that Russia should play an active role in curbing the world’s carbon and methane emissions, and we believe that POS-GRIP technology stands to advance these efforts at the well site.”