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, announces that its subsidiary Plexus Ocean Systems (Singapore) PTE. LTD has completed the formation of a new Malaysian Joint Venture ('JV') company Plexus Products (Asia) Sdn Bhd ('PPA') in conjunction with a local Malaysian oil and gas partner, Integrated Petroleum Services Sdn Bhd ('IPS').
The establishment of PPA in Malaysia is a key milestone in Plexus' strategy to create a fully operational Asian business hub to increase the supply of its pioneering POS-GRIP wellhead equipment and services to the important and vibrant Australian, Brunei, Indonesian, Malaysian, Thai, and Singaporean oil and gas exploration and production markets.
Importantly, IPS is a well renowned upstream support services business to the offshore oil and gas industry in Malaysia and the Asian Pacific region with in-house manufacturing capabilities. It is expected that PPA will benefit from the strong regional network and relationships of IPS as it seeks to obtain the local licences required to enable the supply of Plexus POS-GRIP wellhead equipment.
Over the past few years Plexus has successfully secured contracts with blue chip IOCs and NOCs in the Asian and Oceania regions such as Apache Energy Australia, eni Australia Ltd., Petronas, Santos Ltd., Shell Brunei, and Shell China. The Plexus Board believes that PPA will augment Plexus' recently established Singaporean regional HQ and services base, where Plexus Singapore has access to valve products which complement its wellhead equipment, and which enables Plexus to provide an enhanced product, servicing, and marketing service to the important Asian and Oceania oil and gas markets.
Plexus CEO Ben Van Bilderbeek said, "It is our vision to create a significant Asian business hub in Singapore which, together with the new Malaysian PPA entity, will service the Asian and Oceania regions. The new JV will allow us to build on our established operational presence in the region which will mirror our flagship and highly successfully head-quarters in Aberdeen, where we have been successful in introducing our POS-GRIP wellhead equipment and now enjoy a leading market position in the Scottish and Norwegian North Sea. The ambition of PPA is to become a pivotal supplier to the oil & gas industry in Malaysia and its first initiative will be to initiate the process of securing necessary local wellhead equipment supply licences.
"This is an exciting period for Plexus. In tandem with expanding our geographic presence for the supply of our best in class High Pressure/ High Temperature and standard pressure POS-GRIP wellhead solutions predominantly in the jack up exploration arena, we are also committed to extending our offering through new innovative product development. One such initiative is our new and safer wellhead HGSS subsea wellhead JIP which we are developing alongside six other oil and gas majors to deliver the next generation subsea wellhead. When considered together with our growing profitable rental wellhead supply business, where we continue to win contracts with various oil and gas majors worldwide, I believe Plexus is well positioned for significant news-flow for 2014 and beyond and I look forward to updating shareholders on our progress in due course."