(Alliance News) - Harland & Wolff Group Holdings PLC on Friday said it has been awarded a mid-life upgrade contract for the SeaRose floating production storage and offloading vessel by Cenovus Energy Inc.

Shares in the London-based fabrication company, which serves the maritime and offshore industries from yards in England, Northern Ireland and Scotland, were up 8.6% to 12.25 pence each in London on Friday morning.

Harland & Wolff said the contract awarded to its Harland & Wolff (Belfast) arm is valued at around GBP61 million, with the vessel expected to arrive in the first quarter of 2024 and will be in the building dock for a period of more than three months.

The contract follows the letter of intent announced at the end of July. Cenovus Energy is an oil and natural gas company headquartered in Calgary, Canada.

Harland & Wolff said a number of pre-arrival works have already begun, including inspections, procurement of steel, fabrication of customised blocks and other dry dock operations.

It said it will begin certain fabrication works before the end of the year, so that it is fully prepared to commence refurbishment and upgrade works as soon as the vessel arrives next year.

"Upon completion of pre-arrival workstreams, the company is expected to generate revenues of approximately GBP10 million in 2023, with the outstanding balance expected to be received in 2024," the company said.

Harland & Wolff said revenue from this contract is included within management's revenue expectations for the group to achieve in 2023 and 2024, being GBP100 million and GBP200 million respectively.

"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 [floating production storage and offloading vessel], in addition to applying the latest technologies and innovations for these kinds of highly specialised projects," said Chief Executive Officer John Wood.

"This is a significant win within our non-defence portfolio from a global, blue-chip energy group and I am pleased that we are gaining a reputation as a go-to yard for large and complex programmes. With an estimated 1,000 personnel on-site, this project will allow for further synergies in our execution, leveraging off of personnel, skill sets and supply chains that will support the upcoming [fleet solid support vessel] programme."

By Greg Rosenvinge, Alliance News reporter

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