North Sea contract win for Aberdeen oil and gas well specialist
PLEXUS Holdings, the oil and gas well technology firm, has won a £3.3 million contract to help Total with its exploration drive in the North Sea.
Aberdeen-based Plexus will supply wellhead systems for use on the Solaris well the French oil and gas giant plans to drill in the Norwegian sector of the North Sea.
The award provides a sign that oil and gas firms are prepared to continue with exploration work in parts of the North Sea in spite of the plunge in the crude price and hopefully generate a range of new oil and gas jobs in the North Sea.
Norway provides generous tax breaks for exploration.
Total recently put a 20 per cent stake in the giant Laggan Tormore development West of Shetland up for sale.
The Solaris well looks set to be a challenging exercise for Total. Plexus said initial estimates suggest that Solaris may be the highest pressure well in the North Sea to date.
Oil and gas firms have been moving into high pressure and high temperature (HPHT) areas in their search for new finds in areas where there has been lots of exploration activity, such as the North Sea.
Aim-listed Plexus says its technology is well-suited for work in such areas.
In March Plexus said Budget tax changes that are intended to boost activity on HPHT fields could help generate business for the firm.
Solaris will be drilled close to BG's Mandarin East well, which is also known for its extreme high pressure conditions.
Revenues under the contract with Total will start in October.
Total has been working with Plexus on the development of a subsea wellhead system as part of a joint industry project which involves other oil and gas firms.
Plexus increased revenues by seven per cent, to £13.5m, in the six months to December, from £12.6m. After tax profits increased 28 per cent to £1.97m, from £1.54m.
Source: The Herald Scotland