Shares in Plexus Holdings PLC (LON:POS) rose 6% in early trade after the oil field technology group said it signed a four-year framework agreement with the utility giant Centrica (LON:CNA).
The deal will see it supply surface wellhead and mudline equipment services for jack-up exploration wells in the Norwegian sector of the North Sea.
Centrica is already using Plexus technology on a number of wells.
“To secure a framework agreement with a longstanding customer is in our view testament to the excellent track record we have built up over the years, particularly in the North Sea as a supplier of best in class wellhead equipment to a roster of blue chip operators, including Centrica,” said Plexus chief Ben Van Bilderbeek.
The Centrica tie-up on covers Norway only. However, Van Bilderbeek said he is confident the company can tender for future business in other markets.
Invented and developed by the Plexus CEO, the company’s POS-GRIP wellhead technology is designed to reduce the chance of leakage and the danger of blow-outs. This is where oil or gas bursts out of pipes, following an unexpected rise in pressure.
Because of the installation time savings it confers, the technology might shave as many as 100 hours from a drilling programme.
On deep water applications and some high pressure, high temperature operations daily costs can run to US$800,000 to US$1mln a day.
At 8.20am, the shares were changing hands for just over 105p each.