UAE based offshore oil and gas engineering firm, Lamprell announced that it has received a US$210 million new contract award from Eurasia Drilling Company Limited (EDC).
The contract with EDC is for the construction and delivery of a completely outfitted and equipped, LeTourneau designed, self-elevating mobile offshore drilling platform of a Super 116E (Enhanced) Class design.
The rig is designed to operate in water depths of up to 250 feet and will have a rated drilling depth of 30,000 feet. Lamprell will fabricate the jackup rig in modular form in its new yard in Hamriyah and then complete the construction and commissioning in a shipyard, which is yet to be determined, in the Caspian Sea.
The project is planned to be completed 24 months from the commencement of construction, the company said in its interim statement.
This year Lamprell has refurbished 42 jackup rigs, the projects have been shared between Lamprell’s UAE facilities, with Sharjah working on 21 rigs and the Hamriyah facility working on 21 jackups.
Lamprell’s rig upgrade and refurbishment activity experienced lower average expenditure with the segment recently experiencing a slowdown in business. It expects its 2010 results will be at the “lower end” of current market expectations for the rig refurbishment segment but is optimistic for its other operating markets.
In the second half of 2010, the company was awarded an EPC contract by National Drilling Company (NDC), Abu Dhabi, for the construction and delivery of two jackup rigs valued at $158.5 million each, with additional optional equipment orders valued at $12.6 million per rig. The rigs will be completely outfitted and equipped, LeTourneau designed, self-elevating mobile offshore drilling platforms of a Super 116E (Enhanced) Class design.
Work on both rigs has commenced with delivery scheduled for the end of the first and second quarters of 2012 respectively.
The construction of two offshore well head platforms for an unnamed oil and gas operator in India is progressing and is on course for delivery in late Q4 2010.
In Jebel Ali, work on the Livorno process modules for Saipem was completed with final delivery taking place on 2 September 2010. Work is proceeding on the Aquila process modules for Saipem Energy Services and delivery of the modules is expected to be completed by 28 December 2010, according to the company.
Elsewhere within the company, its Thailand operations are to shut down by year end following a management review, the company did not disclose the reason for the termination of operation but did say that cost of closing the facility will be reflected in the current year’s financial statements.
Lamprell’s order book extending to 2012 which at the end of October stood at approximately $725 million, excluding the EDC contract, comprises approximately $647 million from EPC projects and approximately $64 million from offshore construction projects, including offshore wellhead platforms, floating production, storage and offloading units and accommodation modules.
