Offshore installation and construction company Subsea 7 has said it has won a sizeable contract - meaning worth between $50 million and $150 million, for work on a wind farm offshore Germany.
Subsea 7 said Friday the contract was with innogy Kaskasi for the Kaskasi offshore wind farm project, located approximately 35km northwest of Heligoland in the German sector of the North Sea.
The work scope includes the transport and installation of the offshore substation foundation, 38 wind turbine monopile foundations and 52km of inner array grid cables in water depths of between 18 and 25 meters.
Offshore installation is scheduled for execution in 2021 and 2022 using Seaway 7's heavy lift, cable lay, and support vessels. When completed, the Kaskasi offshore wind farm will have an installed capacity of 342 megawatts.
Steph McNeill, Subsea 7's EVP Renewables, said the company would use an innovative vibratory hammer installation approach to minimize the noise levels during the offshore installation of the monopiles.”
Given that the project execution is scheduled for 2021 and 2020, Subsea 7 will be hoping that the Covid-19 situation will have passed by then.
The company has earlier this week withdrawn its 2020 guidance and outlook statements given late in February, citing the impact of the coronavirus and the oil price crash.
Subsea 7 had in February said that it expected increasing tendering activity for offshore work, and that revenue and adjusted EBITDA were expected to be higher than in 2019, driven by an increase in activity in key markets. The company has now withdrawn its guidance "due to the general uncertainty in the world and for our industry caused by the coronavirus and the collapse in commodity prices."
The company also warned that there is a possibility that measures taken around the world to contain the virus may impact the company's ability to execute existing contracts and recognize revenue in 2020.