Plexus Holdings PLC (LON:POS) has extended its contract with Shell Brunei (BSP) for its POS-GRIP wellhead technology.
The extension covers the supply of both High Pressure/High Temperature and standard pressured Wellhead and Mudline systems and services and is the fourth contract signed between the companies under a 2012 framework agreement. Plexus has worked with BSP since 2006.
Ben van Bilderbeek, Plexus’ chief executive, said: "The extension of our framework agreement with BSP validates our confidence in our ability to maintain relationships with long term customers, and be ready to secure orders when there is business to be won.
Van Bilderbeek repeated that the company needs a pick-up in exploration activity from current historic low levels, but there are signs this may be occurring.
“Encouragingly, with production set to fall following the recent OPEC meeting agreeing to cuts, demand for hydrocarbons predicted to continue to grow, and mature fields in decline, we believe the seeds are in place for the next cyclical upturn to take root.
“While we see the remainder of this financial year as challenging, we believe that 2017/18 financial year will be a turning point both for Plexus and the wider exploration industry."