Lamprell Plc to terminate the group's operation in Thailand

Construction News

Oil and gas rig upgrade and refurbishment services provider Lamprell plc (LAM.L) said Thursday, in its interim management statement, it has received a new contract worth US$ 210 million from Eurasia Drilling Company Ltd.

The contract with Eurasia Drilling Company or EDC is for the construction and delivery of a completely outfitted and equipped, LeTourneau designed, self-elevating Mobile Offshore Drilling Platform of a Super 116E Class design, valued at US$ 210 million. The rig is designed to operate in water depths of up to 250 feet and will have a rated drilling depth of 30,000 feet.

The project is planned to be completed 24 months from the commencement of construction.

Further, the company noted that it has decided to terminate the group’s operation in Thailand with effect from December 31. The total cost of closing the facility will be reflected in the current year’s financial statements and is not expected to be material.

The Group maintains a substantial order book extending to 2012 which at the end of October was approximately US$ 725 million, excluding the EDC contract, comprising approximately US$ 647 million from EPC projects and approximately US$ 64 million from offshore construction projects.

We continue to see high levels of enquiries for our services in most sectors of our business and the board remains optimistic that the long term prospects of the group remain promising, the company said.

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