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(Sharecast News) - Oil and gas engineering service company Plexus Holdings has been awarded a purchase order for plug and abandonment equipment and services from Oceaneering International Services, a division of Oceaneering International, it announced on Monday.
The AIM-traded firm said the order included tieback and subsea well control equipment, together with hydraulic controls and services.
It said the rental equipment would be used to support Oceaneering's vessel-based plug and abandonment services for a six-operator joint campaign in the Dutch sector of the North Sea.
The order was estimated to generate revenues of about £0.5m for Plexus in the 2023 calendar year, with the potential to lead to other similar work in the North Sea and internationally, both with Oceaneering and other customers.
"We are delighted to be working with Oceaneering on this North Sea project and anticipate this opportunity leading to further potential for plug and abandonment work for Plexus, especially given the sector's growth forecasts," said chief executive officer Ben Van Bilderbeek.
"This new order for our unique services on a multi-well campaign is a major step forward for Plexus and represents a diversification of our business into support-vessel based plug and abandonment work."
Van Bilderbeek said that after "many lean years", and following the "collapse and near-collapse of many companies" in the oil and gas services sector in 2015-2016, it was "reassuring" to see a recovery in drilling activity and capital expenditure globally.
"Encouragingly, this has led to an increased level of interest in our Exact-EX exploration wellhead rental services, Centric-15 mudline hangers and our POS-GRIP 'HG' production wellhead technology, for which we are positioning the company to benefit, by way of planned investment in additional inventory and increased customer engagement."
At 1306 BST, shares in Plexus Holdings were up 1.73% at 3.82p.
Reporting by Josh White at Sharecast.com.
