London-listed Lamprell said on Monday that it has entered into exclusive negotiations with a key international client for a “very large” contract involving the offshore wind industry.

The offshore fabricator did not name the client but said it aims to be the “preferred supplier” for the offshore wind job.

“Lamprell will now work with the client to confirm the terms of a reservation agreement that will secure capacity in Lamprell’s Hamriyah yard for the work as negotiations proceed towards contract award,” it said.

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The company said that while “the signing of preferred supplier exclusivity is a significant milestone in the contract process albeit it is not a guarantee of the contract.”

“The group will provide further details of the project in the event of the successful conclusion of negotiations,” it noted.

Lamprell defines a very large contract as having a value of upwards of $150 million.

Ramp-up in bidding activities

Christopher McDonald, the chief executive of Lamprell said the company has “seen a ramp-up in bidding activity from Q4 2021,” and is “currently in advanced stages of tendering with several potential clients across the globe,” driven by the increased demand in its end markets of renewables and oil and gas.

“An emerging trend particularly in the renewables sector is the introduction of reservation agreements to secure fabrication yard capacity for projects up to a year in advance. We view these agreements as a very positive sign of forward planning and addressing limited capacity in the industry,” McDonald said.

Renewables in focus

In addition to its expertise in oil and gas fabrication projects, Lamprell has heavily expanded into the renewables sector.

“By the end of 2021 Lamprell will have fabricated nearly 150 jacket foundations for three of the UK’s biggest renewables projects,” the company said last year.

Whilst expanding its footprint in the renewables sector, Lamprell continues to progress on key oil and gas projects.

Lamprell is a key member of Saudi Aramco’s long-term agreement with offshore players and is presently executing two key projects.