Harland & Wolff enters five-year deal with global oil company

6th Mar 2024 14:12

(Sharecast News) - Harland & Wolff Group announced a major new partnership on Wednesday, having signed a five-year master services agreement with an unnamed global oil services company.

The AIM-traded firm said the agreement centred on the fabrication of large structures for subsea infrastructure projects essential to the oil and gas industry.

It said it had already received its first purchase order under the agreement.

The company would fabricate six specialised subsea structures, designed to withstand extreme pressures and vital to the operation of oil and gas platforms.

It said the contract was worth around £3m.

Construction would take place at the company's Arnish site over the next 18 months, with completion expected by the first half of 2025.

"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," said chief executive officer John Wood.

"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."

At 1343 GMT, shares in Harland & Wolff Group Holdings were up 1.56% at 12.39p.

Reporting by Josh White for Sharecast.com.