- Oil services group Plexus Holdings said Russian licensee Gusar had secured its first major contract to supply wellhead gas exploration equipment to Gazprom.

The contract covered the first year of an up to five-year jack-up gas exploration drilling programme on the Kara Sea Shelf.

Under the terms of a 2016 licence agreement with Gusar, Plexus would receive a licence royalty of 20% based on the invoice value of Plexus products rented or sold.

In addition, a further 20% royalty of the invoice values of te 2019-2020 contract with Gazprom would apply.

'Today's contract announcement represents a significant milestone towards establishing Plexus' best in class gas proof POS-GRIP equipment in Russia and the CIS, one of the top three hydrocarbon producers in the world with significant gas reserves,' the company said.

'Due to the importance of gas in its energy mix, Russia represents a key market for Plexus as its friction grip technology and HG metal sealing have been proven to be ideally suited to the high pressures and temperatures associated with gas.'

At 9:45am: [LON:POS] Plexus Holding PLC share price was +12.5p at 58p

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