Lamprell awaits large contract award from Saudi operator
Following the initial written notice to proceed with some of the work required for a project related to the construction of multiple jack-up lift barges, which was sent by a Saudi-based contractor, the UAE-based offshore construction and fabrication specialist Lamprell is anticipating an award for the full scope of work required for this project.
Lamprell announced on Friday that it has received a limited notice to proceed (LNTP) pending a new contract award from Bas Global Marine Services (BGMS), a subsidiary of BIG Oil & Gas, in anticipation of the full award in the second quarter of 2022.
Lamprell explained that the full scope of work on this large contract relates to the delivery and construction of multiple jack-up lift barges to BGMS. The offshore construction and fabrication specialist defines a large contract as being worth between $51 and $150 million.
Based on the company’s statement, the scope of work under the LNTP is for early works, including the procurement of materials and the mobilisation of the firm’s project management team. The firm also added that all project activities will be undertaken in its Hamriyah facilities.
Christopher McDonald, Lamprell’s Chief Executive, remarked: “We are very pleased to be working on this project in support of BGMS’ contract with Saudi Aramco, a key customer for Lamprell for whom we are undertaking a number of other projects. We have a well-established and proven track record for constructing jack-up vessels for use in the offshore energy sector and we are confident of our ability to deliver this project safely and on time.”
The work on the project will start immediately, according to Lamprell, while the project completion is planned for the second half of 2023.
BAAS Global Marine Services was founded in 2014 in Al Khobar, Eastern Province with the aim of meeting the growing demand for professional services in the field of marine safety equipment and ancillary services to Saudi Aramco.
Regarding Lamprell’s recent activities, it is worth noting that Lamprell signed a $45 million revolving trade loan facility with two banks in October 2021 to cover the costs for the building of two IMI jack-up rigs, after securing the funding for the continuation of the construction of these two rigs earlier that month.
The company also entered into exclusive negotiations in January 2022 as a preferred supplier with an international client in the offshore wind industry for what the company describes as ”a very large contract” with a value in excess of $150 million.
This deal is in line with Lamprell’s strategy for the future, as the firm made the decision to reorganise into three new business units – Renewables, Digital, and Oil & Gas – in January 2021. The company then in March 2021 entered into a JV agreement with Injazat to create and market innovative digital solutions focusing predominantly on renewables and oil and gas industries and announced the appointment of a new CEO for the digital joint venture – AiFlux – in December 2021.