Lamprell delays jack-up rig delivery over ‘technical issue’

Lamprell, a provider of fabrication, engineering and contracting services to the energy industry, has informed that delivery of the jack-up drilling rig which had been scheduled for delivery in 2Q 2016 has been delayed. 

The company said on Tuesday that the rig is in its final stages of commissioning and has undergone a series of equipment proving tests in anticipation of delivery to the client. Lamprell did not reveal the name of the rig nor its client.

During this final testing, a technical issue has arisen with equipment supplied by an original equipment manufacturer (OEM) and this has resulted in a delay to the delivery of the rig.

In all other respects, Lamprell has completed its workscope in making the rig ready for delivery, the company noted.

The revised date for delivery of the rig is now expected to be mid-August. The resultant delay in the delivery means that the Group could be exposed to contractual remedies on the project including liquidated damages.

However, Lamprell said that the board anticipates that the majority of the remedial costs and potential damages exposure as a result of this delay will be recoverable from the OEM.

“The board is fully committed to recover such costs and damages legally, if so required,” said Lamprell.

Apart from the delivery of this rig, all other six rigs that Lamprell are currently constructing remain on schedule.

More broadly, the market environment remains very challenging and this will impact the company’s revenues in 2017, Lamprell said.

John Kennedy, Executive Chairman for Lamprell, said: “We are disappointed to experience this delay in the delivery of a rig project to one of our key clients. This has been caused by technical issues with critical equipment from an OEM and our project team is working closely, with both the OEM’s technical experts and the client’s project team, to resolve these issues and we believe we have a good recovery plan in place.”

Share this article

Follow Offshore Energy Today

Posted on July 26, 2016 with tags .

Events>

<< May 2019 >>
MTWTFSS
29 30 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

08th OIL & GAS AFRICA 2019 CONFERENCE

OIL & GAS AFRICA is one of the most prime regional & international Oil and Gas conferences in East Africa…

read more >

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

OWI WA 2019

West Africa’s only dedicated Offshore Well Intervention Conference is returning for its second year…

read more >

OIL & GAS PHILIPPINES 2019

Oil & Gas Philippines event display products like Oil & gas, fire protection systems and materials…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply