UK’s Plexus to Buy Back Russian Partner’s Shares

UK-based oilfield technology firm Plexus Holdings has revealed a deal with Russia-focused partner Gusar which is expected to inject new impetus to the roll-out of the POS-GRIP jack-up rig systems, Energy Voice reports.

Plexus will buy-back 4.95 million of its shares currently held by Gusar for $3.2 million in cash, with the transaction priced at 65 cents per share.

The proceeds will, in turn, allow Gusar to finance the purchase of two POS-GRIP jack-up exploration wellhead systems from Plexus – as detailed in previous announcements – and the deal is expected to expedite the establishment of the Plexus POS-GRIP equipment in Russia and the Commonwealth of Independent States (CIS).

The sale was first announced in February 2018 on the back of a license agreement signed by the two companies in 2016.

“Plexus sees the share buyback as a practical and positive move that enables the acceleration of the delivery of the equipment into Russia, and positions Gusar ready to fulfill anticipated rental wellhead exploration orders in Russia, one of the world’s three major hydrocarbon producers,” said Ben Van Bilderbeek, Plexus chief executive.

Gusar director Alexander Beryozkin said: “We are delighted that after a period of intense work with Gazprom and other customers, we are preparing to enter the stage of participation in exploration drilling in the Russian Federation as soon as the 2019 drilling season.

“The Plexus – Gusar alliance gives us an opportunity for the first time to bring localized products to the Russian market using advanced superior technology, which positions us for further participation in the Russian exploration drilling market,” Beryozkin added.

The proposed share transaction with Gusar requires approval by Plexus shareholders, so the company has convened a general meeting to be held on 1 February in London.