Harland & Wolff has secured a fabrication contract supporting a major oil services firm on global subsea projects from its yard at Arnish.
The fabrication firm (AIM: HARL) announced the signing of a five-year master services agreement on Wednesday, under which it will deliver a series of large structures for an unnamed global oil services company which supplies subsea infrastructure to major oil and gas developments around the globe.
H&W said it has now received its first purchase order under that agreement, which covers the fabrication of six subsea structures with a contract value of approximately £3 million.
It said the “highly specialised structures” are used in oil and gas platforms and the surrounding infrastructure, and will be capable of withstanding pressures of 430 bar (6,235 psi).
These structures will be built over the next 18 months at the company’s Arnish site on the Isle of Lewis, as part of a staged delivery programme with an expected completion date in the first half of 2025.
CEO John Wood commented: “I am delighted that Arnish is recognised as a centre of excellence to deliver critical subsea infrastructure. This contract marks a significant step for the company and builds on the highly technical work the yard has already undertaken on suction anchors, piles and the work it is currently performing for the Sea Rose FPSO contract.
“These specialised subsea structures are a new product area for Harland & Wolff and we expect that successful delivery of this contract will open up significant opportunities for additional contracts in subsea infrastructure going forward.”
Last autumn the group won £61m worth of work from Cenovus Energy to carry out a mid-life upgrade on the SeaRose floating production storage and offload (FPSO) vessel, which has served the White Rose oil field off Newfoundland and Labrador since 2005.
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