PLEXUS Holdings, the oil and gas technology specialist, has signed a major deal which will explore how its well-head systems can be used in energy projects across China.
The deal will see Plexus and China Oilfield Services - majority-owned by state-backed oil and gas giant CNOOC Group - work with Red Sea Technologies and Yantai Jereh Oilfield Services to explore commercial opportunities for shallow water subsea and crossover wellhead production systems in China.
It comes just days after the Aberdeen-based company secured £8 million of funding from Jereh, which allows the Chinese company to manufacture and sell Plexus's wellheads in key overseas markets including China and India.
Plexus said the latest agreement is in line with its strategy of building the presence of its POS-Grip wellhead equipment in markets offering growth opportunities.
According to Plexus, the collaboration combines the key attributes of its technology, notably safety, performance and reliability, with Jereh's manufacturing, sales and marketing capabilities.
The two will work alongside China Oilfield Services and Red Sea Technologies on the design and manufacture of innovative shallow water oil and gas equipment solutions for the Chinese market.
Plexus chief executive Ben Van Bilderbeek said: "We are delighted to have signed this significant collaboration agreement with COSL, RST and our new Chinese licensing partner Jereh, which will see us strengthen our reach in the Chinese oil and has wellhead services market where we see exponential growth potential in the coming years.
"Demonstrating our commitment to building our presence in the exciting Chinese market, we are equally delighted to have announced the signing of our licence agreement with Jereh who are also part of this collaboration agreement."
Shares in Plexus closed down 3.25p, or 1.42 per cent, at 225.2p.
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