Business
Russian Licensee Awarded Contract by Gazprom
Russian Licensee Awarded Contract by Gazprom.
About this update from Plexus Holdings
[{"type":"text","content":"\n \nRNS Number : 6614R Plexus Holdings Plc 04 March 2019 \n\nPlexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil Equipment & Services\n \n \n \n \nThis announcement contains inside information\n \nPlexus Holdings PLC ('Plexus' or 'the Company')\nRussian Licensee Awarded Gas Exploration Drilling Contract by Gazprom \n \nHighlights\n· First major contract for POS-GRIP rental exploration wellhead equipment secured by Russian licensing partner with global energy giant Gazprom\n· Covers the first year of a five-year jack-up gas exploration drilling programme which provides additional revenue stream for Plexus under existing Licence Agreement\n· Breakthrough order in what is a key market for Plexus following sale of niche wellhead exploration equipment and services business for Jack-up applications to TechnipFMC subsidiary ('TFMC')\n \nPlexus 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 its Russian licensee, LLC Gusar ('Gusar'), has secured its first major contract to supply POS-GRIP rental wellhead gas exploration equipment to Gazprom, the global energy giant. \n \nThe contract covers the first year of an up to five-year jack-up gas exploration drilling programme on the Kara Sea Shelf at shallow water depths of less than 150 metres, and carries rental rates similar to the ones historically achieved in the UK Continental Shelf. Under the terms of the 2016 Licence Agreement with Gusar, Plexus will receive a licence royalty of 20% based on the invoice value of Plexus products rented or sold. In addition, under the terms of an additional Royalty Agreement entered into with Gusar at the time of the recent share buy back transaction, a further 20% royalty of the invoice values of this 2019-2020 contract with Gazprom will apply. The two POS-GRIP 18-3/4\" rental wellhead sets Gusar recently purchased from Plexus for circa £1.6m will be used on the first well of the programme, which is due to spud in the second quarter of 2019. \n \nToday's contract announcement represents a significant milestone towards establishing Plexus' best in class gas proof POS-GRIP equipment in Ru...