Aberdeen oil and gas engineering services firm Plexus Holdings has been awarded an equipment contract for a new North Sea plug and abandonment (P&A) project by SLB (NYSE: SLB).
P&A work refers to the process of preparing a well to be closed permanently.
Plexus said the P&A work will take place in Q4 2023 and generate equipment rental revenues in the region of £100,000.
During the project, SLB will utilise Plexus’ range of ‘Exact’ adjustable wellhead and ‘Centric’ mudline systems.
Plexus chief executive officer Ben Van Bilderbeek said he was confident this was just the beginning for the company’s expansion into the P&A market.
“Our continued growth into the expanding P&A market is highly encouraging particularly as this project utilises the Exact and Centric technology specifically designed to provide the safest and quickest tieback and drilling solutions for not only these types of P&A wells, but also exploration and appraisal wells,” he said.
“The contract is also an excellent example of the continued collaboration between SLB and Plexus where we believe that SLB recognises Plexus capabilities in Adjustable Wellhead and Mudline projects.
“We are confident that further opportunities for similar work will arise in the future.”
Plexus continues SLB collaboration
The contract continues the longstanding collaboration between Plexus and SLB, the world’s largest oilfield service company.
In 2020, SLB agreed a non-exclusive multi-year licensing deal to use the POS-GRIP wellhead technology developed by Plexus.
POS-GRIP is a “friction-grip” tech which uses integral metal seals, which are externally pre-loaded, against permanent wellhead fixtures, ensuring the wells are “gas-tight” across their lifecycle.
Under the deal Cameron International, a US branch of SLB (formerly known as Schlumberger), agreed to pay a royalty to Plexus based on the number of wellheads sold, leased or rented in each calendar year in the range of 3% – 6% through to the end of the 2029 calendar year.
Plexus also received a $500,000 lump sum payment under the deal.
The Aberdeen firm also recently completed a contract with Oceaneering for P&A work including tieback and subsea well control equipment together with hydraulic controls and services.
Plexus said the use of its ‘Mud Containment System’, used by Oceaneering on four different wells over an offshore deployment period of two months, generated revenues of £850,000 in the 2023 financial year.