Lamprell lands US$317 million contract in Abu Dhabi

Wednesday, Jul 28, 2010

Lamprell has been awarded US$317 million new contract from National Drilling Company, Abu Dhabi.

The contract with National Drilling Company is for the construction and delivery of two jackup rigs valued at US$158.5 million each additionally optional equipment orders valued at US$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. The consist of triangular hulls and three 310 foot truss type legs per rig, each leg with an electro mechanical rack and pinion elevating system, allowing operations in depths of 200 feet of water with rated drilling depth of 30,000 feet.  Work will commence on the 1^st of August 2010 and delivery scheduled for mid 2012 in the second quarter.

As part of the contract, NDC has options for Lamprell to build two further jackup rigs, valued at US$ 158.5 million per rig, exercisable during the 12 month period commencing on 1 August 2010. Each option includes additional optional equipment orders valued at US$ 12.6 million.

Lamprell and Riginvest have agreed that the contract they entered into for the construction of a LeTourneau Super 116E jackup drilling rig will terminate upon signature of the contract between NDC and Lamprell. The rig that was being built for Riginvest will now be built for NDC. Riginvest will receive a portion of the contract advance it initially paid to Lamprell as part of the termination agreement. From an accounting perspective, pursuant to International Financial Reporting Standards, the cancellation of the Riginvest contract will create a material one-off accounting gain in the Company's financial statements for 2010, the amount of which cannot be determined at this stage.

Source: Red Mist Media