Lamprell Clinches $390M Contract to Build 2 Jackups for Ensco

Lamprell plc, an United Arab Emirates-based provider of engineering and contracting services to the oil & gas and renewable energy industries, disclosed Tuesday that it has received a contract from Ensco Intercontinental GmbH, a subsidiary of Ensco plc (Ensco), to construct two high specification, LeTourneau-designed, self-elevating Mobile Offshore Drilling Platforms of a Super 116E (Enhanced) Class.

The jackups are designed to operate in water depths of up to 340 feet with a rated drilling depth of 30,000 feet, and will incorporate a number of Ensco proprietary features and specifications. Lamprell will fabricate both jackups in its Hamriyah yard, located in the United Arab Emirates.

The first jackup ENSCO 140 (340' ILC) is scheduled to be delivered to Ensco in 2Q 2016, while delivery of the second jackup ENSCO 141 (340' ILC) is planned for 3Q 2016.

Ensco also has options for Lamprell to build two further jackups of the same design and these options have to be exercized within a period of six months from the effective date of the contract, which is valued at approximately $390 million excluding options. Ensco added that the total construction cost, inclusive of commissioning, systems integration testing and project management, of the jackups is estimated at $430 million, or $215 million per jackup.

"This contract award demonstrates Lamprell's position as one of the world's leading builders of jackup rigs and we are confident of our ability to deliver the rigs successfully and to our usual high safety and quality standards," Lamprell CEO James Moffat said in a press release.

“While we recognize that many newbuild rigs are entering the market, we believe our new ENSCO 140 and ENSCO 141 jackups will attract significant customer interest based on their unique design, which is predicated on detailed market analysis of customer preferences,” Ensco Chairman, President and CEO Dan Rabun commented in a separate company announcement.