Forgemasters has won a £5.5m contract for the first major offshore oil development in the world over the last two years.
The firm’s offshore oil and gas specialist, Vulcan SFM, secured the contract with Samsung Heavy Industries to supply 73 steel castings - ranging from 0.5 tonnes to 19.5 tonnes - for a semi-submersible oil platform.
It is being built in Korea for a Gulf of Mexico oilfield.
It is the first major offshore development after offshore oil and gas developments stopped in 2015 following a price crash.
Paul Mockford, design director at Vulcan SFM, said: “It is a testament to Sheffield Forgemasters’ standing in the offshore oil and gas sector that we should win this contract for the first major offshore development since 2015.
“We have a long-standing relationship with Samsung Heavy Industries and our track record in delivering robust cast engineering solutions for use in offshore oil and gas developments is unparalleled.
“The contract is for a range of components, 20 of which are module support castings which allow the topside modules to sit on the hull of semi-submersible platform – the remaining castings are structural components within the hull.”
Sheffield Forgemasters will manufacture the castings to the client’s design.
Delivery of the components is expected to start in late 2017/early 2018.
The new floating production platform will have the capacity to produce up to 140,000 gross barrels of crude oil per day from up to 14 production wells.
Oil production is expected to begin in late 2021.
In May, the firm said it was almost back in the black just 12 months after reporting pre-tax losses of £7m.
It posted a £900,000 pre-tax loss and attributed the change in fortunes to “efficiency measures” and an “aggressive drive” towards new markets. It also made a £6.5m investment in machining centres to reduce production bottlenecks. Turnover is £73m and headcount is more than 650.
n Last week it was fined £1m after a worker was burned in an explosion.