Plexus Holdings Plc (LON:POS), the owner of the proprietary POS-GRIP friction-grip method of wellhead engineering, has entered into a licence agreement with Cameron International Limited, a Schlumberger group company, the world's leading oilfield services provider.
The agreement grants a non-exclusive licence to enable Cameron to use the company's POS-GRIP and HG metal-to-metal seal method of wellhead engineering for the development of conventional and unconventional oil and gas surface wellheads.
Cameron will pay a royalty based on the number of wellheads sold, leased, rented or otherwise supplied in each calendar year in the range of 3% to 6%, which shall apply up to the end of the 2029 calendar year.
In addition to royalty fees, Cameron will pay a capital licence fee payment of US$500,000 in exchange for the non-exclusive licence rights.
If Cameron wishes to initiate additional projects, the parties have committed to work together to agree the scope, terms, objectives, territory and royalty rates and royalty duration of each additional project.
The agreement is for an initial term of three years with the option for Cameron to extend the agreement for a further six years.
"We are looking forward to working with Plexus to explore the use of friction-grip technology in our wellhead systems, " said Paul Sims, Global Business Director - Surface Production at Schlumberger said in a statement.