London: Lamprell said yesterday it has received a $317 million (Dh1.1 billion) contract to provide jackup rigs to National Drilling Company, or NDC, the drilling arm of Abu Dhabi National Oil Company (Adnoc), with options for two more rigs, worth $158.5 million each and exercisable up to 12 months from August 1.
Each option includes additional optional equipment orders valued at $12.6 million (Dh46.27 million).
Chief Executive Nigel McCue told Dow Jones Newswires that this new contract brings the company's order book to around $900 million.
He also said that while he is happy with the contract, he doesn't see it as sign of a broader recovery in the newbuild market, but more as a sign of the strength of some national oil companies. The provider of specialist engineering services to the international oil and gas and renewables industry said work on the first rig will start Augist 1 with delivery scheduled for the middle of the second quarter 2012.
One of the rigs being built for NDC was originally ordered by Norway's Riginvest in June 2008 for delivery in 2010. The value of the contract at the time was $186 million but Riginvest ran into financing issues and work on the rig was delayed, leaving Lamprell with a hole in its order book.
Lamprell will repay Riginvest a portion of the contract advance upon termination of the original agreement which will end when the contract between NDC and Lamprell is signed. McCue wouldn't say how much the company would return to Riginvest, but did say it wasn't material.
The cancellation of the Riginvest contract will create a material one-off accounting gain in the company's financial statements for 2010, Lamprell said, adding that the amount cannot be determined at this stage. McCue said the company would have a better idea of the amount around the time of its interim results, which are due at the end of August.
The rigs will consist of triangular hulls and three 310 foot truss type legs per rig, allowing drilling in depths of up to 200 feet of water with a rated drilling depth of 30,000 feet.