Harland & Wolff Group Holdings has won a major contract from Canadian oil giant Cenovus Energy to undertake the mid-life upgrade of the SeaRose Floating Production Storage and Offloading vessel.
The £61 million deal follows a letter of intent signed in July 2023 and will see the vessel arrive at Harland & Wolff’s Belfast shipyard in the first quarter of 2024 for a three-month refurbishment.
Harland & Wolff shares jumped over 10% on the news on Friday.
Preparatory work including steel procurement and block fabrication has already begun, expected to generate £10 million in revenues for Harland & Wolff in the 2023 fiscal year.
When work gets fully underway next year, the project will require around 1,000 personnel and subcontractors at its peak.
The SeaRose upgrade will form a significant component of Harland & Wolff’s projected revenues of £100 million and £200 million in 2023 and 2024 respectively.
John Wood, CEO of Harland & Wolff Group Holdings plc, commented on the deal:
“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 FSPO, in addition to applying the latest technologies and innovations for these kinds of highly specialised projects.”