Oil and gas contractors and companies are looking for ways to reduce their overheads and costs with the downward spiral of the oil price, so it is understandable that oil and gas services companies will also do the same. Oil services company Lamprell has announced that it will be manufacturing components for wind farms located in the North Sea in the UAE.
Lamprell explained that this move will help it cope with the downturn that is present in the oil and gas industry. The company won a contract worth US$225 million from ScottishPower Renewables to supply about 60 foundations. These foundations will be used for turbine installations. According to available information, ScottishPower Renewables will be installing 102 turbines at the offshore East Anglia One wind farm. Each turbine will have the capacity to generate close to 7 megawatts. It is anticipated that these turbines will be able to light up over 500,000 homes annually.
ScottishPower Renewables Chief Executive Keith Anderson stated that the company’s contracting strategy ensures that more than 50 per cent of investments that the firm makes in its lifetime will be passed on to contractors and suppliers in the UK.
Lamprell Chief Executive Christopher McDonald stated that getting the contract from ScottishPower Renewables will allow Lamprell to showcase its fabrication skills, which can be used in other fields in the energy industry. It proves that Lamprell has the ability to collaborate with energy companies other than those in the oil and gas sector.
Lamprell has been adversely affected due to the plunging oil price. It recorded a loss of $4.4 million for the first half of 2016. It acknowledged that its revenues in 2016 will be lower than anticipated due to the struggling oil and gas market. However, with the offshore wind energy sector surging, Lamprell and other oil services companies may be able to reverse their fortunes.