UAE-based Lamprell, a provider of specialist engineering services to the international oil and gas industry, says 2008 has been a successful year, the company having been awarded several high-profile contracts.

These include a $186 million one from Riginvest GP for the construction and delivery of a completely outfitted and equipped LeTourneau-designed, self-elevating mobile offshore drilling platform of the Super 116E (enhanced) class.
Lamprell, which has one of two primary facilities in the Jebel Ali Free Zone, is also executing a lumpsum turnkey construction contract with BassDrill Limited for two self-erecting tender assist drilling units, each vessel complete with living accommodation and a modular mast equipment package amounting to $204.5 million.
The company is also fabricating an FPSO (floating, production, storage and offloading) topside module for Saipem SpA worth $28.7 million and another $21 million contract from LeTourneau Drilling Systems for the construction of four API 2000 HP fast moving land rigs. They are to be completed around mid-2009.
Lamprell has played an important role in the development of the offshore industry in the Arabian Gulf for over 30 years and has been providing increasingly specialised services to the onshore and offshore oil industry. Its other primary facility is located in Sharjah.
The Jebel Ali facility has been extremely productive this year, said Lamprell chairman Peter Birch. “This high level of activity has been a result of the construction of two harsh-environment special-purpose self-propelled four-legged jackup vessels for Seajacks International and a number of contracts for FPSO process modules for clients including Saipem SA for which it is building single-buoy moorings.”
Birch said the construction of Seajacks jackup vessels had continued to progress on budget and on schedule for delivery in the first and second quarters of 2009.
The Jebel Ali facility, one of the most modern in the Gulf, was purpose-built in 2002. The facility covers 161,000 sq m, including more than 15,000 sq m of covered work space with internal overhead cranes suitable for carrying out fabrication and assembly activities under cover. The covered areas also contain the latest welding and CNC cutting machinery. The yard was designed to allow optimum production based on a clear and logical flow of material through the facility. In addition to the covered fabrication areas it has extensive open fabrication areas that are equipped with gantry and mobile crawler cranes. These open areas are used to assemble the final structures.
Within this facility, Lamprell is able to fabricate multiple structures that can individually weigh over 3,000 tonnes. On completion, these are transported using multi-wheeled hydraulic trailers to the quayside that is only 250 m away via a dedicated loadout corridor, and then loaded out onto barges or heavy-lift vessels for onward transportation to their final destination.
Business continues to expand this year with the company reporting a 29.3 per cent increase in revenue during the first half of 2008 compared with the same period last year.
Birch said the first half of the year started strongly with the number of rigs upgraded in Lamprell’s facilities in line with projections.
“The company is progressing with the upgrade and refurbishment of the Al Ghallan jackup drilling unit, a $50.9 million contract awarded by National Drilling Company (NDC). We anticipate completion of this project in January 2009. In addition, contracts continued to be secured with a number of key clients for jackup rig upgrade and refurbishment projects with potential growth in work scope.”
Peter Whitbread, CEO, said the first half of the year had been another successful period for Lamprell during which it continued to deliver significant growth in turnover and secure a number of key contracts.
“Our business continues to expand in what is clearly a buoyant market for our services and we are delighted that the company has embarked on its next phase of organic growth, with the opening of a new rig upgrade facility in Thailand where we expect to deliver revenues towards the end of this year,” he added.
Offshore construction also experienced a busy period with the completion and delivery of process modules for several FPSO projects including Single Buoy Moorings Frade, Aker SMART 1, FPS Ocean Deep Producer 1 and Kanfa Olowi.
Construction of Lamprell’s new facility at Hamriyah, Sharjah, continues and operations are scheduled to commence there early next year. When completed it will have a developed area of 250,000 sq m with a deepwater berthing quay wall of 1,250 m length and 9 m depth. This will enable Lamprell to work on up to 10 rigs simultaneously and construct up to three new build jackups. Lamprell will also be able to refurbish drill ships and semi-submersible drilling units which, up to this time, the company has been unable to service in any significant capacity because of space and water depth constraints.
Commenting on the market, Lamprell says this year has continued to witness very strong levels of activity in oil and gas markets that will support high levels of demand for its products and services for the foreseeable future.
The Middle East jackup market is forecast to continue to experience increasing levels of demand for several years and this will continue to result in rigs being mobilised into the region. In addition, there are new exploration blocks being offered in the Indian sector and the offshore rig count there is expected to increase significantly in the next five years.
In terms of rig upgrade and refurbishment, over 75 per cent of the existing global rig fleet is over 25 years old, and the company anticipates that high demand for its services will continue despite the fact that multiple new rigs will be delivered in the next three years.
“The overall level of activity in all Lamprell’s end markets suggests that the company will maintain a substantial order book for confirmed work for offshore jackup rigs, land-based drilling rigs and FPSO-related project works well into 2010,” Birch said
“At the end of August 2008 the total order book was approximately $818 million and extends well into 2010. This provides excellent forward visibility for the company’s revenue growth and, in addition, a significant number of potential new contracts have been identified as likely prospects for Lamprell across all our business activities,” he added. 
This year Lamprell executed 17 upgrade and refurbishment projects at its Sharjah and Hamriyah facilities. Notable projects included CE Thornton for Transocean Offshore International Ventures and Al Ghallan for the NDC.