Plexus to buy back 5m shares from Russian partner

Plexus CEO Ben van Bilderbeek launches the “Python” subsea wellhead at Offshore Europe 2015.
Plexus chief executive Ben Van Bilderbeek

Plexus Holdings has agreed to buy back 4.95 million shares in the company from its Russian partner Gusar.

The Aberdeen oilfield technology firm will pay £2.5m, equivalent to 50.5p per share, via an “off-market buyback”.

Gusar will use the cash to buy two of Plexus’ POS-GRIP jack-up exploration wellhead systems and associated equipment.

The sale was first announced in February 2018 on the back of a license agreement signed by the two companies in 2016.

The pact gave Gusar permission to make and rent Plexus’ exploration wellhead equipment for jack-up rigs in Russia, which was identified as a key market for the technology.

Plexus will seek shareholder approval of the share buyback deal at a general meeting in London on February 1.

Ben Van Bilderbeek, Plexus chief executive, said: “We see the share buyback as a practical and positive move that enables the acceleration of the delivery of the  equipment into Russia, and positions Gusar ready to fulfil anticipated rental wellhead exploration orders in Russia, one of the world’s three major hydrocarbon producers.” 

Gusar general director Alexander Beryozkin said: “We are delighted that after a period of intense work with Gazprom and other customers, we are preparing to enter the stage of participation in exploration drilling in the Russian Federation as soon as the 2019 drilling season.

“As we have previously indicated, we have reached an agreement with Gazprom for the supply of mudline suspension systems localised for manufacturing in Gusar’s facilities in Russia further to our License Agreement with Plexus.  

“With the use of POS-GRIP technology, we look forward to delivering to our customers reduced drilling time and costs, while increasing safety by not having to remove the BOP.

“The Plexus – Gusar alliance gives us an opportunity for the first time to bring localised products to the Russian market using advanced superior technology, which positions us for further participation in the Russian exploration drilling market.”

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