InfraStrata issues response to Triumph's LOI termination

4C Offshore | Tom Russell
By: 06/07/2021 InfraStrata
InfraStrata has issued a statement regarding the recent announcement from Triumph Subsea Services that it has formally cancelled the letter of intent (LOI) that was issued to InfraStrata plc in December 2020 for wind farm development vessels (WDVs).

The WDV is a turnkey solution designed for floating wind farm installations, cable laying and providing marine services for offshore carbon capture and green hydrogen projects.

Last week, Triumph announced that it cancelled the LOI between the two firms. It stated that this decision was made as it had not received any formal commercial quotation or vessel build schedule. Therefore, based on not receiving this vital information that forms part of a shipbuilding contract, no contract could be agreed or signed before the June 2021 expiration date. Furthermore, without a formal commercial quotation and build schedule no discussion could proceed forward with any of the financial institutions that had been supporting Triumph with this project.

In response, InfraStrata issued a statement outlining that the LOI was not binding for either party, had an expiration date of 30 June 2021 in the event a contract was not entered into, and therefore, by default, there is nothing to terminate. Furthermore, InfraStrata outlined that it informed Triumph in April 2021 that it had set the LOI aside following due diligence on the credibility of Triumph’s proposal.

InfraStrata stated: "For a shipbuilding project to proceed, there are several key components required such as, inter alia, a credible counterparty with a proven management team, detailed technical specifications with equipment and a detailed design that has classification society approval along with equity and a credible route to debt funding.  As part of the Company’s corporate governance process, prior to progressing from a rough order of magnitude price to a fixed price tender, it was established, in our opinion, that Triumph had achieved none of the above milestones. Therefore, a decision was made to pursue other projects that had a far great probability of converting into credible vessel construction contracts.  Further, Triumph’s aspiration that the UK government would step in and provide the equity was an interesting concept, but we were unable to find any evidence of this being a reality.

"The Company will not issue any further statements on this matter, and we take this opportunity to wish Triumph Subsea Services Ltd all the best with their very ambitious project going forward."

For everything you need to know about the strategies used to support the construction and O&M of offshore wind farms, current and future, including supply and demand for service and accommodation vessels, and helicopters, click here.