Home Energy services Aberdeen oil services company highlights long-term role of hydrocarbons in context of Russian aggression

Aberdeen oil services company highlights long-term role of hydrocarbons in context of Russian aggression

0

PLEXUS Holdings, the oil and gas engineering services specialist, has said it is well positioned to capitalize on demand for North Sea gas in the coming decades following the huge disruption to global energy supplies caused by the Russian invasion of Ukraine.

The Aberdeen-based company, which supplies and designs wellhead technology, highlighted the “revitalized recognition of the role that hydrocarbons have yet to play in the global economy” as Western economies turn away from Russian oil and gas .

But while Plexus stressed the continued importance of hydrocarbons in meeting energy demands, the company said its technology had a role to play in reducing carbon emissions by reducing methane leakage. It is also investigating whether its technology can be applied to energy systems such as carbon capture and storage and geothermal energy.

Plexus, led by chief executive Bert van Bilderbeek, reported a pre-tax loss of £1.9 million for the first half, broadly unchanged from the interim phase in 2020.

It won a new surface production wellhead contract with a major North Sea operator during the period and strengthened its relationship with Cameron, part of oil services giant Schlumberger, with two new agreements.

The former will see Plexus re-enter the exploration wellhead rental business in which it had built an “excellent reputation” before the division’s sale to TechnipFMC in 2018, while the latter expands the scope of a existing license worldwide.

Meanwhile, the company reaffirmed that it has suspended sales and marketing activities with Gusar, which holds a license to supply Plexus products in Russia, “for the foreseeable future.” Plexus said the move is not expected to have a material impact on its performance in the year ending June 30.

Mr. van Bilderbeek said, “The deployment of our proprietary wellhead and associated equipment designs for surface and subsea applications remains a key focus, and we are already pursuing a number of new call opportunities. offers for rental exploration wellheads.

“Growing oil and gas supply constraints, combined with the recognition of gas as the transitional fuel of choice, suggest that the UKCS and ECS still have an important role to play over the coming decades.”

He added: “In addition to these opportunities, we also believe that in the longer term, our technology can play a crucial role in supporting emerging industries such as carbon capture, gas storage, hydrogen and geothermal energy”.

Shares of Plexus Holdings closed up 4.5% to 5.7p.