Harland & Wolff has secured a contract with Canada-based Cenovus Energy for the mid-life improve of the SeaRose FPSO vessel.
The base contract worth is roughly £61 million (~at the moment round $74 million).
The FPSO is anticipated to reach at Harland & Wolff in Belfast within the first quarter of 2024 and might be within the constructing dock for a interval of greater than three months.
The contract follows a letter of intent introduced earlier this 12 months, and various pre-arrival works have already began, together with inspections, procurement of metal, fabrication of personalized blocks, and different dry dock operations.
Harland & Wolff will begin sure fabrication works in FY 2023 in order that it’s absolutely ready to start out refurbishment and improve works as quickly because the SeaRose FPSO arrives subsequent 12 months.
Upon completion of pre-arrival workstreams, the corporate is anticipated to generate revenues of roughly £10 million in FY 2023, with the excellent stability anticipated to be acquired in FY 2024. At its peak, it’s estimated that there might be circa 1,000 personnel engaged on the FPSO, together with Harland & Wolff’s workers and subcontractors.
Revenues from this contract are included inside administration’s income expectations for the Harland & Wolff Group to attain in FY2023 and FY2024, being £100m and £200 million, respectively.
John Wood, CEO of Harland & Wolff Group Holdings plc, stated: “I am delighted that Cenovus has chosen Harland & Wolff as its preferred yard to undertake the mid-life upgrade of the SeaRose. The vessel first came into Belfast in 2012 so we will use our existing knowledge of this [FPSO], in addition to applying the latest technologies and innovations for these kinds of highly specialized projects.
“This is a big win inside our non-defense portfolio from a world, blue-chip vitality group, and I’m happy that we’re gaining a repute as a go-to yard for big and complicated applications. With an estimated 1,000 personnel on-site, this venture will permit for additional synergies in our execution, leveraging off of personnel, ability units, and provide chains that can help the upcoming FSS program.”
When it last year announced the decision to restart the West White Rose Project offshore Newfoundland and Labrador, Cenovus said that the SeaRose FPSO drydock program would proceed in 2024 and take 70 days.
The West White Rose is being developed via a fixed wellhead platform consisting of topsides supported by a concrete gravity structure, tied to the Sea Rose FPSO in Canada’s Atlantic Ocean.
Cenovus stated final 12 months that first oil from the platform can be produced within the first half of 2026, with peak manufacturing anticipated to succeed in roughly 80,000 barrels per day (bbls/d), 45,000 bbls/d web to Cenovus, by year-end 2029.
The West White Rose Project will add an anticipated 14 years of manufacturing to the White Rose subject.
