LAM.L Regulatory News (LAM)

7 Dec 2006 07:00

Lamprell Plc07 December 2006 LAMPRELL PLC ("Lamprell" or the "Company") ANNOUNCES US$84.5M OF NEW CONTRACT AWARDS Lamprell plc, based in the United Arab Emirates and listed on London AIM(symbol: LAM) is a leading provider of specialist engineering services to theinternational oil & gas industry. Lamprell is today pleased to announce theaward of contracts for the rehabilitation of the Hurricane Katrina damagedNabors 660 jackup rig (formerly the Ocean Warwick), the refurbishment of 4Global Sante Fe jackups and, from new customer Akers FP, a contract for thefabrication of a Floating Production Storage & Offloading ("FPSO") vesseltopside modules. The value of these contracts is likely to be in excess ofUS$84.5million. REHABILITATION OF JACKUP NABORS 660 Lamprell has been awarded an initial contract by Nabors Drilling InternationalLimited ("NDIL") for the comprehensive rehabilitation of the Nabors 660 jackuprig, worth US$43 million. An additional work scope, with an anticipated value ofUS$25 million, is under development and subject to client approval. The rig, originally named 'Ocean Warwick', was operating in the Gulf of Mexico,on Main Pass block 299, until it was severely damaged by Hurricane Katrina in2005. During the storm, the rig moved 66 miles North East of its operationalposition, onto the shores of Dauphin Island, close to the Alabama coastline. Nopersonnel were on board the rig at the time of the storm. The rig was subsequently acquired by NDIL and renamed the Nabors 660. On 13August, 2006 the rig was loaded on to the 22,000 tonne deck capacity 'HamriyahPride', a semi submersible barge owned and operated by Lamprell for the purposeof shipping customer projects to the Lamprell facilities in the UAE. The rigarrived at Hamriyah on 11 November 2006. The contract includes the removal of all storm damaged materials, fabrication ofa replacement drill floor, legs, spud cans and sponsons, refitting the livingquarters as well as the installation of five new engines and a complete drillingpackage. The project is expected to be completed in November 2007. REFURBISHMENT OF GLOBAL SANTA FE JACKUPS Lamprell has been awarded a US$36.4 million contract for the refurbishment offour Global Santa Fe jackup drilling rigs, the Main Pass 1 & 4 and the HighIsland 2 & 4. The rigs are scheduled to arrive in Lamprell's Sharjah yard inmid January 2007, transported on two heavy lift vessels. The refurbishment scope of work is scheduled to be completed in April 2007. Oncompletion all four units will be deployed to Saudi Arabia on long term charterfor Saudi Aramco. FABRICATION OF SMART FPSO MODULES FOR AKER FP Lamprell has been awarded a US$5.1 million fabrication contract by Aker FloatingProduction ("Aker FP") to build the topside modules for the Smart 1 FPSO vessel,to be maintained and operated by Aker FP. This is the first time Lamprell hasbeen awarded FPSO work by Aker FP. The project scope covers the fabrication of the main process module, two riserbalconies and the knock out drum skid. The award includes an extension option tobuild the topsides for Aker FP Smart 2 FPSO. All elements will be fabricated atLamprell's offshore construction facility located in the Jebel Ali Free Zone inDubai and are expected to be completed in November 2007. The Smart FPSO'S are a modular design suitable for production of up to 60,000barrels of oil per day, making it suitable for medium sized field operatorsaround the world and a viable alternative to typical early production systemsemployed by the major oil companies. Commenting on the award of these contracts, Peter Whitbread, Chairman and ChiefExecutive, Lamprell said: "We are delighted to be able to announce the award of these three contracts.Not only do they call upon the full range of expertise that we are proud to beable to offer our clients, but they highlight the confidence clients have inLamprell's ability to deliver on important projects. These contract awards andthe expected completion in 2007 further underpin our confidence for the comingyear." Enquiries: Lamprell plc. (+9716 528 2323) Peter Whitbread, Chairman and Chief Executive Officer David Moran, Chief Financial Officer and Chief Operating Officer Citigate Dewe Rogerson, London (+44 207 638 9571) Media enquiries: Martin Jackson/George Cazenove Analyst enquiries: Nina Soon NOTES TO EDITORs • Lamprell, based in the UAE, has played an increasingly prominentrole in the development of the oil & gas industry in the Arabian Gulf for over30 years, in later years providing specialised engineering services to theindustry. • Lamprell's two primary facilities are in Port Khalid, in theEmirate of Sharjah, and in the Jebel Ali Free Zone, in the Emirate of Dubai,both of which are in the UAE. • The principal markets in which Lamprell operates, and theprincipal services it provides, are: - Upgrade and refurbishment of offshore jackup rigs; - New build construction for the offshore oil and gas sector, includingFloating Production, Storage and Offloading ("FPSO") systems and other offshoreand onshore structures; and - Oilfield engineering services, including the upgrade andrefurbishment of land rigs. • Lamprell has grown strongly over the last three years, driven bybuoyant conditions in the oil and gas industry and the increase in capacity withthe opening of its facility in the Jebel Ali Free Zone in 2002. • Lamprell joined AIM, a market operated by London Stock Exchangeplc, on 16 October 2006. This information is provided by RNS The company news service from the London Stock Exchange