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Oil and gas engineering services business Plexus Holdings has entered into a licence agreement with Cameron International - a Schlumberger group company which is the world's leading oilfield services provider.
The agreement grants a non-exclusive licence to enable Cameron to use Plexus Holdings' POS-GRIP and HG metal-to-metal seal method of wellhead engineering for the development of conventional and unconventional oil and gas surface wellheads.
Pursuant to the agreement, Cameron shall pay a royalty to the company based on the number of wellheads sold, leased, rented or otherwise supplied in each calendar year in the range of 3% to 6%, which shall apply up to the end of the 2029 calendar year, subject to the terms of the agreement.
The Agreement provides for a modest minimum performance requirement with respect to wellhead sales in a market that historically has consumed tens of thousands of production wellheads per annum.
In addition to royalty fees, Cameron shall pay the company a capital licence fee payment of $500,000 in exchange for the non-exclusive licence rights.
At 9:45am: (LON:POS) Plexus Holding PLC share price was +2.25p at 20.5p