Plexus Holdings PLC (AIM:POS) has agreed to expand the wellhead technology licence deal with SLB (Schlumberger) for a cash payment of US$5.2 million (£4.1 million).
The new surface production wellhead licence acquired by SLB is a perpetual royalty-free licence for POS-GRIP technology and HG seal technology plus any improvements, enhancements, or derivatives to the technology for surface wellhead production applications for all pressure and size ranges.
The scope of the licence covers oil and gas production and storage applications, as well as carbon capture and storage, hydrogen storage, and water and cuttings reinjection.
On a non-exclusive basis the licence also allows for SLB to use the adjustable surface production wellheads, and HG trees, which Plexus said gives the potential to generate royalties from these applications of its POS-GRIP technology.
As well as owning the original intellectual property, the licence allows Plexus to continue operating in the sector on a limited basis, offering quotes for SLB valves and trees combined with Plexus wellheads on a project basis, subject to SLB approval.
Plexus chief executive Ben van Bilderbeek said the new licence agreement is “further validation of Plexus' IP by this leading energy technology company and recognises the contribution our leak-proof POS-GRIP wellhead equipment can make to the oil and gas industry's ESG and net zero goals”.
SLB surface production systems director Badri Mani said the US$74 billion multinational is “very excited about the prospects for this technology”, highlighting the time savings it provides and “enhanced seal integrity assurance” for onshore and offshore applications.
Broker Cavendish noted that the larger-volume, lower-cost surface production wellheads are an area of the industry area that Plexus "has not been recently focussed on".