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A contract worth £3m is heading for the Arnish yard in Stornoway Harbour.

In the second contract announcement this week, Harland and Wolff said they had signed a  five-year Master Services Agreement to fabricate subsea structures at the Arnish yard.

The contract, worth around £3 million, is with a global oil services company. The six subsea structures to be built in Stornoway is the first purchase order under the agreement.

They will be built over the next 18 months in a staged delivery programme expected to be completed in 2025.

The subsea structures are specialised oil and gas platform infrastructure capable of withstanding pressures of 430 bar (6,235 psi).

Welcoming the contract, John Wood, CEO of Harland & Wolff Group Holdings, said: “I am delighted that Arnish is recognised as a centre of excellence to deliver critical subsea infrastructure.

“This contract marks a significant step for Harland & Wolff and builds on the highly technical work the yard has already undertaken on suction anchors and piles and the work it is currently performing for the Floating Production Storage and Offloading (FPSO) platform vessel, the SeaRose FPSO.”  

“These specialised subsea structures are a new product area for us, and we expect that successful delivery of this contract will open up significant opportunities for additional contracts in subsea infrastructure in the future.”

Earlier this week, it was explained that Arnish is in line for a major work boost after the company seems set to win a multi-million contract to build pontoons for a port in the Falkland Islands. The Belfast-based company has emerged as the “preferred bidder”, the Falklands government has announced.

Harland and Wolff have confirmed that Stornoway and its three other sites all have the capacity to build the pontoons destined for Port Stanley. The work is to be shared across its multiple sites. The contract for the new floating dock was put out to tender in late 2023. Harland and Wolff is now in the final round of pricing and commercial arrangement negotiations. The two-year contract is worth between £100 million and £120 million.

During February, specialist parts manufactured at Arnish yard left for Belfast, for use as part of a major vessel refit at the company’s dry dock in Northern Ireland.

The buoy seal test plates were manufactured at Arnish to a very tight deadline, with the team working 24 hours a day to complete them to schedule.

Harland & Wolff’s multi-site business model allows it to serve different client requirements when needed from different locations, as in this instance.

The yard at Arnish currently has a 150-strong workforce and a thriving apprenticeship programme.

Pictures show the buoy seal test plates being loaded onto the Carly before heading off from Arnish for Belfast (Harland & Wolff).