NEWS ANALYSIS Rig refurbs and newbuilds boost Lamprell half-year results $317 million contract for NDC will see Sharjah yard fabricate two LeTourneau jackups ew rig contracts in the UAE worth nearly US$360 million were highlighted in Lamprell’s first half results, although the firm recorded a 27.2% drop in revenue compared to the first half of 2009. Lamprell had a total of thirty jackup rigs under construction at its Hamriyah and Sharjah facilities during the first six months of 2010, with a revenue
Nigel McCue, Lamprell CEO.
Oil&Gas Middle East September 2010
of $189.3 million compared to $259.9 million for the same period in 2009. “We experienced a higher level of rig refurbishment activity through our facilities than in prior periods, although it continues to be at a lower level of average expenditure,” explained Lamprell chief executive, Nigel McCue. “Whilst we are experiencing a reduced level of offshore construction activity, mainly in the area of Floating Production, Storage and Offloading vessels, we remain confident of the long term future of this market sector,” he added.
In July the company won a $317 million contract from Abu Dhabi’s National Drilling Company for two jackup rigs. Following the award to construct the two LeTourneau S116E jackup drilling rigs, construction activities have commenced on the first rig at the company’s Hamriyah facility. This particular rig was previously under construction for Riginvest GP, and the engineering and procurement elements of the project are well advanced, the company said. The procurement activities associated with the second rig have begun and construction of this unit will commence in the third quarter of 2010. As part of the contract, NDC has options for Lamprell to build two further jackup rigs for $158.5 million per rig, exercisable over the next 11 months. Each option includes additional optional equipment orders of $12.6 million. The company also won a $39 million contract from an undisclosed integrated energy provider.
LAMPRELL BOOKED NEW CONTRACTS WORTH $890 MILLION IN THE FIRST HALF OF 2010. Source: Lamprell
The contract is for the construction of an offshore topside structure comprising of a two level utility deck and five level accommodation module for 38 personnel. Lamprell said the project will be constructed to North Sea standards and is scheduled for delivery alongside the Jebel Ali quay in the first quarter of 2012. In April, Lamprell delivered the deepwater drilling rig Offshore Mischief for Texasbased Scorpion Offshore. Lamprell said it is looking into in new business areas such as the refurbishment and construction of semi-submersible drilling rigs and drill ship refurbishment, which will be carried out at its new Hamriyah Free Zone facility. The company’s oilfield engineering operation is being relo-
Oil & Gas Middle East - Sept 2010 - ITP Business