A pump assembly comprising a stator and a rotor having vanes of opposite handed thread arrangements is described. A radial gap is located between the stator vanes and the rotor vanes such that rotation of the rotor causes the stator and rotor to co-operate to provide a system for moving fluid longitudinally between them. The operation of the pump results in a fluid seal being is formed across the radial gap. The described apparatus can also be operated as a motor assembly when a fluid is directed to move longitudinally between the stator and rotor. The presence of the fluid seal results in no deterioration of the pump or motor efficiency, even when the radial gap is significantly greater than normal working clearance values. Furthermore, the presence of the radial gap makes the pump/motor assembly ideal for deployment with high viscosity and/or multiphase fluids.