(Alliance News) - Oil rigs manufacturer Lamprell PLC said Monday it has been formally awarded a contract from International Maritime Industries Co for the delivery of two jack-up drilling rigs.
The company first received a letter of intent from the Saudi Arabian joint venture for the deal in late December 2018.
The two rigs are to be built collaboratively between IMI and Lamprell, with Lamprell's share of the project value expected at around USD350 million. The rig design will be based on the Super 116E, and the majority of work will be carried out at Lamprell's facilities in the UAE.
The project is expected to start immediately, with a 25% down payment to Lamprell amounting to USD87.9 million which is set to be received in late January. The first rig is set to be completed in over two years for the first rig, with the second rig being delivered three months later.
Looking ahead, the down payment will put Lamprell in a stronger new cash position for 2020.
"We are delighted to have secured the formal award for the first two jackup rigs as part of our partnership with IMI and expect to host a substantial number of Saudi nationals during the course of the project in our facilities as part of building IMI's capabilities. The maritime yard in Saudi Arabia is a significant part of the country's economic ambition and we are honoured to play a role in its realisation," said Chief Executive Officer Christopher McDonald.
Shares in Lamprell - which is based in Dubai - were up 10% at 37.50 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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