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China Expansion – Collaboration Agreement with China Oilfield Services, Red Sea Technologies and Yantai Jereh Oilfield Services Group for Shallow Water Subsea and Crossover Wellhead Production Systems in China
Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP friction-grip method of wellhead engineering, has announced a collaboration agreement with China Oilfield Services Limited a major integrated oilfield service solution provider which is majority owned by Chinese state owned company CNOOC Group (the largest producer of offshore crude oil and natural gas in China), Red Sea Technologies Ltd, a leading oilfield design and services company in South East Asia, and Plexus’ Chinese licensing partner Yantai Jereh Oilfield Services Group, a US$6.9bn oil services provider.
The collaboration agreement will explore commercial opportunities for shallow water subsea and crossover wellhead production systems for oil and gas field activities in China, and is in line with Plexus’ global strategy to expand its best in class POS-GRIP wellhead equipment in markets which offer significant growth opportunities.
Plexus and Jereh will combine the POS-GRIP method of engineering known for its safety, performance and reliability capabilities and Jereh’s first class manufacturing and sales and marketing skills, to work alongside COSL and RST to collaborate on the design, development, manufacture, supply, installation and provision of aftermarket services for the significant Chinese shallow subsea systems and crossover wellhead production systems market.
Plexus’ CEO Ben Van Bilderbeek said, “We are delighted to have signed this significant collaboration agreement with COSL, RST and our new Chinese licensing partner Jereh, which will see us strengthen our reach in the Chinese oil and gas wellhead services market where we see exponential growth potential over the coming years. Demonstrating our commitment to building our presence in the exciting Chinese market, we are equally delighted to have announced the signing of our licence agreement with Jereh who are also part of this collaboration agreement.
“In addition to actively building on our existing position in the Asian region following the establishment of our Malaysian and Singaporean hubs and our major licence agreement with Jereh, we are pleased to continue to build upon our reputation of delivering a new standard of wellhead products with key global strategic partners. This latest collaboration agreement is another significant milestone in this journey, and Jereh and Plexus look forward to designing and manufacturing a range of innovative shallow water oil and gas equipment solutions for the Chinese market where COSL has the largest fleet of offshore oilfield services facilities in China. Whilst we predominantly supply into the jack-up exploration arena we remain committed to POS-GRIP product innovation and as such are focused on making significant inroads into the volume production and subsea markets. We look forward to working with COSL, RST and Jereh on this newly formed collaboration relationship and further look forward to updating shareholders on our progress.”
