Oil and gas engineering services firm Plexus Holdings said Tuesday that oilfield services giant SLB had exercised its option to extend its non-exclusive licence agreement with Plexus for an additional six years effective from November 10, 2023.
Plexus owns the proprietary POS-GRIP method of wellhead engineering,
Plexus' CEO Ben van Bilderbeek said: "The decision by SLB to extend the agreement beyond its initial three-year term I believe is a testament to our proprietary POS-GRIP technology.
"SLB is finalizing the development of its new application of POS-GRIP technology for oil and gas wellhead applications. Upon completion, we anticipate receiving licensing income from SLB as it deploys these innovative wellheads worldwide.
"We are proud of our partnership with SLB and look forward to continuing our collaboration in delivering sustainable solutions for the industry."
In November 2020, Plexus entered into a licensing agreement with Cameron International Limited, a wholly owned subsidiary of SLB (formerly Schlumberger), the world's largest oilfield services provider.
The non-exclusive licence enabled SLB to use the company's POS-GRIP friction grip method of engineering and "HG" metal-to-metal sealing system for the development of oil and gas surface production wellheads. Pursuant to this, SLB agreed to pay a royalty to the Plexus based on the number of wellheads sold, leased, rented, or otherwise supplied in each calendar year in the range of 3% to 6%.
In December 2021, the terms of the scope of the existing agreement were expanded to additional territories to make the licence worldwide where higher royalty rates apply. SLB has now extended this agreement for an additional six years to 10 November 2029.
A second licensing deal with SLB was signed in August 2021 enabling Plexus to pursue opportunities in the Jack-up exploration wellhead business and offer Exact exploration wellhead and Centric mudline suspension systems, which Plexus is actively marketing.