The boss of Aberdeen-headquartered Plexus Holdings (LON: POS) is forecasting a “significant resurgence” in North Sea activity.
Ben van Bilderbeek says there has already been “quite a pickup in the number of enquiries” about the London-listed company’s jack-up rental business.
But he said it was a “pity” that it’s taken conflict in Eastern Europe in “order for people to open their eyes” to the importance of energy security.
Numerous governments are seeking to reduce imports of Russian oil and gas following the country’s attack on Ukraine earlier this year.
It has thrown energy security into the spotlight and action is being taken across Europe to bolster domestic supplies of hydrocarbons.
A return to high commodity prices, in part due to the Kremlin’s invasion, means offshore activity is on the rise once more, something that seemed unlikely not so long ago.
In an interview with Proactive Investors, Mr van Bilderbeek, Plexus’ chief executive said: “The resurgence in the North Sea is a good things for us, but a bad thing for the poor Ukrainian people who bare the pain of all this nonsense.
“We have seen quite a pickup in the number of enquiries for jack-up rental business opportunities, not only in the North Sea but in other parts of the world. We are benefitting for once from political events, where in the past we have suffered tremendously. It has been one things after the other; if it wasn’t Covid it was an economic downturn.”
Plexus announced last year that it had struck a deal with Cameron, a subsidiary of Schlumberger, to return to the jack-up exploration wellhead rental business, after exiting it in 2017.
Mr van Bilderbeek added: “It’s very difficult for an oil and gas company to try to predict what the future brings. We’re reacting to the circumstances and this time I think we can look forward to quite a resurgence for some years in the North Sea to try to help the energy situation in the UK.”
He also stressed that “everyone has an obligation” to try to limit the environmental impact of North Sea operations.
In March Plexus opted to suspend its activities with its partner in Russia in response to the Ukraine invasion.
The move was expected to incur a negative cash flow impact of £650,000.
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