Construction group reveals healthy order backlog

UAE fabricator Lamprell views the recent oil price rise as positive for the oil and gas services sector.

Offshore staff

SHARJAH -- UAE fabricator Lamprell views the recent oil price rise as positive for the oil and gas services sector. According to the company’s latest interim statement, it continues to draw a high level of enquiries for offshore construction work, despite increased competition from yards locally and in the Far East.

Since July, the company has worked on 20 jackup rigs, including five at its new facility in Hamriyah. Lamprell’s yard in Sattahip, Thailand has also just completed its second jackup rig refurbishment project, for the Atwood Vicksburg.

Construction of the Scorpion Offshore Mischief for Scorpion Rigs is on schedule for delivery in spring 2010, with a further progress payment received in line with contractual terms.

Next month, Lamprell should deliver the tender barge BassDrill Alpha to BassDrill. Lamprell has agreed in this case to a reduced delivery payment of $60 million. It remains in discussion with Riginvest G.P. concerning finance options for the LeTourneau Super 116E drilling jackup project.

In September, Lamprell won orders totalling $52 million, comprising an FPSO contract from Saipem Energy Services and two rig refurbishment projects from Transocean Investments and Noble International. Recently, it also secured a $17 million contract from Saipem to build a 140-man accommodation module, with work due to start this month.

At the Jebel Ali facility, work is progressing on the Saipem Livorno and Aquila process modules and on spud can extensions for Master Marine.

At end-October, Lamprell’s order book stood at around $422 million, mainly comprising $317 million from EPC projects and $58 million from FPSO orders. The company adds that following strategic agreements between its procurement group and various suppliers, it has achieved substantial cost savings this year. It anticipates further savings in 2010 and beyond as further strategic agreements are put in place.

11/20/2009

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