Lamprell expects intense competition for new projects
Lamprell, a builder of offshore drilling rigs, with construction facilities in the U.A.E, expects 2015 to be a challenging year.
The company has said that while 2014 was an exceptionally strong year for Lamprell, that level of performance will not be replicated in
2015 due to Lamprell’s projects being at different stages in their construction cycles and the weaker market environment. recently.
In 2014, Lamprell has said, the company saw a strong rate of conversion of its bid pipeline with six new build jack-up rig orders won and several smaller awards signed.
In the second half of the year, Lamprell started construction for four new build jackup rigs, two for Ensco rigs and two for Shelf Drilling.
In total, seven new build jack-up drilling rigs are presently being built in the company’s Hamriyah facility. Also, a module construction project for 29 piperacks is being built for Petrofac in our Jebel Ali yard. Additionally, there are ten rig refurbishment projects underway across the company’s Hamriyah and Sharjah facilities.
Also, the company has said that the construction of the two new build jack-up rigs recently awarded by NDC is due to start shortly
Challenging year ahead
“The effects of the announced reductions in capital expenditure from many operators are already having an impact on global markets and are expected to affect Lamprell’s bid pipeline. We anticipate intense competition with a large number of players chasing fewer projects, leading to increased pressure on margins, ” the rig builder has said.
Jim Moffat, Chief Executive Officer, Lamprell, said: “With the recent slump in the oil price, winning work in 2015 is going to be a challenge as the industry adjusts to the new realities. We are entering this period in a position of relative strength with a strong balance sheet and a high backlog. We will continue to focus on maintaining our competitive position in the sector.”