Monday 3 June 2019

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, announced the formation of PPC, a majority owned JV which will exclusively supply Plexus with surface production xmas trees and wellhead annulus outlet valves. Following the sale last year of its jack-up exploration wellhead rental business to TechnipFMC, the formation of PPC is in line with Plexus' strategy of targeting high-value surface production projects where operators typically purchase wellheads as a package together with a production xmas tree and side outlet valves.

Plexus will supply the JV with its POS-GRIP "HG" Technology and products associated with xmas trees, while BEL Valves will supply the JV with critical valve components and technology. BEL Valves is a leading UK (Newcastle) based valve company with over 45 years of experience in the oil and gas industry, which designs and manufactures valves and actuators, and typically focuses on applications downstream of the wellhead and tree systems. BEL Valves has supplied its critical valve equipment and technology for some of the most challenging high spec applications such as high pressure/high temperature ('HP/HT') and subsea projects. As a result, BEL Valves is ideally placed to support Plexus on the most demanding of wellhead and tree projects.

PPC will be based in Plexus' facility in Dyce, Aberdeen so that all project planning, procurement and product integration work can be delivered seamlessly from a single point to the customer. Although Plexus anticipates that both the "HG" production wellhead and PPC tree will be largely maintenance free, any after-market work will also take place at the same facility.

BEL Valves, part of the British Engines Group, was established in Newcastle-upon-Tyne in 1964 to design and manufacture high pressure and high temperature valves for the petrochemical industry. In the 1970s, BEL Valves established itself as a key global supplier to the oil and gas industry. Today, BEL Valves continues to lead the way in innovative engineering and customer service by pushing industry standards forward in safety, reliability and sustainability. Further information on BEL Valves is available on the company's website www.belvalves.com

Plexus' CEO Ben Van Bilderbeek, said: "The formation of PPC enables Plexus to supply xmas trees as part of a 'package solution' for the first time. It is a key step in our company's evolution and ambition to provide the industry with wellheads and associated products, which are gas tight and methane leak free. With the long-term field history and extensive qualification testing already demonstrated with the tree and valve products which Plexus now has full access to, we are confident that we can now truly provide the complete package to our customer."

BEL Valves' CEO Bruce Heppenstall, said: "Our valves and Plexus' wellhead systems are an excellent fit. Both deliver the highest standards in performance, reliability and safety and both have a proven track record in operating in extreme HP/HT environments. We at BEL Valves are looking forward to working with Plexus to offer operators a complete surface package, which we believe delivers the best solution available by far."

Further Information

Production Wellhead and Xmas Tree Market

Plexus developed the jack-up wellhead rental business without access to or ownership of any gate valve technology, as typically exploration wells do not require a xmas tree. However, production wellheads always require a tree, and in the supply of production "HG" wellheads in the past, Plexus has either partnered with a valve and tree supplier on a project by project basis or sold the wellhead directly to the customer without a tree. Now, as Plexus focuses on the production wellhead market it is increasingly necessary to be able to sell wellheads as a package together with a production xmas tree and side outlet valves. Plexus has therefore committed to establishing PPC with BEL Valves to have access to a premium quality valve product with extensive field history and qualification results.

Further Product Development

As well as supporting Plexus' current production surface wellhead business, it is anticipated that PPC will also be a catalyst to further develop elements of Plexus POS-GRIP technology and other IP which has specific application in valve and xmas tree technology, for both land and offshore surface platform production wells.