Lamprell Announces US$ 51 Million of New Contract Awards

Thursday, Feb 04, 2010

Lamprell (ticker: LAM), a leading provider of specialist engineering services to the international oil & gas industry, is pleased to announce that it has received new contract awards, which in aggregate total US$ 51 million.

New contract awards

Saipem S.p.A (“Saipem”) has awarded Lamprell a US$ 16.6 million contract for the construction of two interconnecting accommodation modules with helideck, providing accommodation for 140 people. This contract will be carried out at our Jebel Ali facility and will be delivered to Saipem at the Jebel Ali quayside in December 2010. Saipem will then transport the modules to the Caspian Sea.

Japan Drilling Co. Ltd. (“JDC”) has awarded Lamprell a US$ 11.8 million contract for the upgrade and refurbishment of jackup drilling rig Sagadrill 2. The rig is expected to arrive at our Sharjah facility in April 2010 and will remain at our facility for three months whilst the works are undertaken.

In addition Lamprell has added US$ 22.3 million since the last announcement to the Company’s order book in respect of further rig refurbishment contracts and growth in work scope of on-going rig refurbishment contracts. These works are being carried out at our Sharjah and Hamriyah Free Zone facilities.

Commenting on the contract awards Nigel McCue, Chief Executive Officer, Lamprell said:

“We are delighted to be announcing these new contract awards today which reinforce our strong reputation for quality and service. The contract with Saipem, a long standing client of Lamprell, follows an earlier contract win from Saipem announced in November 2009 and is testament to our ability to deliver projects on time and on budget.

Rig refurbishment is Lamprell’s traditional expertise and today’s announcement, which outlines a new award and the growth in scope on a number of on-going rig refurbishment projects, reflects an underlying strength in this area of our business. We remain extremely busy bidding for new contracts and today’s awards support our confidence in the quality of our pipeline.”

Source: Lamprell