Oilfield service giant TechnipFMC has announced it has completed the purchase of Plexus Holdings’ “jack-up” business in Aberdeen for £42.5million.
An initial sum of £14million has been paid out with an additional £27.5million payable dependent on the future performance of the business during a three-year earn-out period.
The business, which specialises in jack-up wellhead exploration equipment and services, will continue to operate out of its location in Dyce.
The unit, which will become part of TechnipFMC’s surface technology division, employs 50 people across two buildings – the move is not expected to result in any job losses.
Both sides have also now entered into a collaboration agreement to develop POS-GRIP friction grip technology for applications outside of jack-up exploration, such as decommissioning.
Plexus’ CEO Ben Van Bilderbeek, said: “The Disposal and Collaboration Agreement is a win-win for both parties. As well as achieving a sale value of up to £42,500,000 for the Jack-up Business, we gain industry recognition for our technology, which we have long claimed sets a new standard in terms of performance and safety. Furthermore, we have secured the opportunity to collaborate with a top tier company to explore potential development of additional products based on POS-GRIP.
“Encouragingly, we believe that the upward trend of the oil price in recent months, alongside indicated OPEC-led production cuts through 2018, could well be the catalyst for an uplift in oil & gas exploration activity during the three year earn-out period.”
Richard Alabaster, President of TechnipFMC’s Surface Technologies business, stated: “I am very pleased that we have finalized the transaction which supports our objective of extending and strengthening our position in exploration-drilling products and services while leveraging our global field presence. It also enhances TechnipFMC’s capability in HPHT applications.”