Business
Licence Agreement with Cameron, a Schlumberger Co.
Licence Agreement with Cameron, a Schlumberger Co..
About this update from Plexus Holdings
[{"type":"text","content":"\n \n \n \n RNS Number : 7508E\n Plexus Holdings Plc\n 10 November 2020\n \n \n \n \n Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services\n \n \n \n 10 November 2020 \n \n \n \n \n This announcement contains inside information\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Plexus Holdings PLC ('Plexus' or 'the Company')\n \n \n \n \n Licence Agreement with Cameron, \n \n \n a Schlumberger Group company\n \n \n \n \n \n \n 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 the Company has entered into a licence agreement (the \"Agreement\") with Cameron International Limited (\"Cameron\"), a Schlumberger group company, the world's leading oilfield services provider.\n \n \n \n \n \n The Agreement grants a non-exclusive licence to enable Cameron 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. \n \n \n \n \n \n Pursuant to the Agreement, Cameron shall 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 3% to 6%, which shall apply up to the end of the 2029 calendar year, subject to the terms of the Agreement.\n \n \n \n \n \n The Agreement provides for a modest minimum performance requirement with respect to wellhead sales in a market that historically has consumed tens of thousands of production wellheads per annum. If Cameron does not reach the minimum performance requirement, it can elect to pay a \"top up\" royalty fee.\n \n \n \n \n \n In addition to royalty fees, Cameron shall pay the Company a capital licence fee payment of US$500,000 in exchange for the non-exclusive licence rights. \n \n \n \n \n \n If Cameron wishes to initiate additional projects, the parties have committed to work together to agree the scope, terms, objectives, territory and royalty rates and royalty duration of each additional project. \n \n \n \n \n \n The Company has a general obligation to provide Cameron with comprehensive guidance as to how to apply the specified intellectual property...