Plexus awarded contract for second exploration well offshore Oman

Plexus has been awarded an order for a second well from Masirah Oil, a BVI based company majority owned by technology driven oil and gas company REX International.

The new contract will see Plexus supply Masirah with its POS-GRIP Tersus Mudline equipment and 10,000psi adjustable rental exploration wellhead for the Karamah-1 exploration well offshore Oman. The estimated value of the contract to Plexus is US$285,000 with revenues expected to commence in January 2017.

Karamah-1 will be drilled from the Aban VII Jackup rig and follows the successful drilling by Masirah (a new customer in a new territory) last year of the Manarah-1 well, which was drilled using Plexus’ POS-GRIP wellhead equipment (see announcement of 20 January 2016 for further details). Karamah-1 is the second of a multi-well programme which could extend to a third well, subject to the drilling results. Drilling operations are expected to take between 20 and 30 days.  Masirah originally selected Plexus’ equipment due to the safety and time savings of POS-GRIP compared to the traditional slip and seal systems, and also the enhanced safety advantages of Plexus’ mudline systems and surface hangers with installation through the blow out preventer.

Plexus’ CEO Ben Van Bilderbeek said, “This is the second order we have secured with Masirah for our cost effective and technically superior wellhead solutions. Aside from the positive impact on our revenues, it further increases our visibility in this important oil and gas region. The Middle East is one of the few regions in the world where drilling activity has remained relatively stable during the current downturn.  As a result, it is a key area of focus for us, as we look to expand the geographic footprint of our best in class equipment. The superior qualities of our wellheads in terms of performance, reliability and safety have no geographic boundaries, and as a result we are confident we can replicate, on a global basis, the historic success we have had in the North Sea where Plexus is firmly established as the dominant supplier of jack-up exploration wellheads.”