Plexus wins relief well contract

Plexus said it had secured a multi-million pound contract with an unnamed oil and gas major to supply relief support in the North Sea.

The firm estimates that the agreement, which is subject to finalisation of contract terms, is likely to be worth in excess of £6m with revenues starting in July 2012.

It will supply wellhead equipment to be on permanent stand-by in the event that a relief well is needed.

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Plexus has been buoyed by increasing pressures for spill response and well control contingencies, both from regulators and from within the oil and gas industry, following the disaster in the Gulf of Mexico.

"We are delighted to have been awarded this contract and believe it illustrates the increasing pressure faced by oil and gas operators to follow best practice in terms of response contingency planning capability," said Chief Executive Ben van Bilderbeek.

"We believe that with safety standards and regulations set to become more stringent over the coming years, this could potentially be a significant new business area for Plexus to further develop and pursue."

The firm's shares rose 8% following the news.