Lamprell delivers Ensco jack-up late. Seeks compensation from Cameron

Offshore rig builder Lamprell has delivered the “Ensco 140” LeTourneau-­designed, Super 116E (Enhanced) Class jack-up drilling rig to Ensco.

The UAE-based yard on July 26, 2016 said the rig’s delivery would be delayed, resulting in potential exposure to remedial costs and liquidated damages. On, Sunday, August 28, Lamprell informed that it had signed an agreement with the client to settle all claims arising from the late delivery of the rig.

The settlement agreement includes a deduction of $25 million from the final milestone payment in respect of late delivery. As part of the settlement, Lamprell will also provide services for the “Ensco 140 and 141” rigs, including temporary storage and grant an extended warranty for the jacking equipment supplied by the original equipment manufacturer, Cameron LeTourneau.

As a result of the settlement agreement, Lamprell’s expected 2016 revenue will be reduced by $25 million and the company anticipates a reduction of around $35 million on its expected 2016 profit. The rig builder said the late delivery of the “Ensco 140” rig was caused by failures in the jacking equipment that Cameron supplied.

“Lamprell has successfully implemented a solution for this issue on the “Ensco 140″ rig and the Group expects to deliver the other six projects as planned. Lamprell’s Board is fully committed to recovering the remedial costs arising from the technical defects in the jacking equipment from Cameron as well as seeking compensation from Cameron,” Lamprell said.

Share this article

Follow Offshore Energy Today

Events>

<< Aug 2019 >>
MTWTFSS
29 30 31 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

OEE Conference & Exhibition 2019

OEE2019 is organised by Ocean Energy Europe, the industry association representing ocean energy in Europe.

read more >

Shanghai Int Petrochemical and Offshore Oil & Gas and Chemical Industry Technology and Equipment Exhibition 2019

cippe Shanghai has attracts both…

read more >

OWI LATAM 2019

Over the two-day conference, 25+ expert speakers will share exclusive insight on how to develop an integrity, production and P&A strategy…

read more >

Uganda International Oil and Gas Summit 2019

Uganda International Oil & Gas Summit will once again examine the industry’s developments…

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