Lamprell Delays Delivery of Jackup to Mid-August Due to Technical Issue

Lamprell plc, an United Arab Emirates-based provider of fabrication, engineering and contracting services to the energy industry, disclosed Tuesday that delivery of the newbuild jackup, probably ENSCO 140 (400' ILC), which had been scheduled for delivery in the second quarter of 2016 (2Q 2016), has been delayed to mid-August due to a technical issue that occurred during the final stages of commissioning.

"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. Lamprell has worked with the client and the OEM's technical experts, and has a forward work program to deliver the rig to both Lamprell's and the client's high standards of quality," the firm said in a press release.

Lamprell said it might have to make liquidated damages, but believes that the majority of the remedial costs and potential damages exposure as a result of the delay will be recoverable from the OEM.

"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. We are committed to delivering the rig as soon as possible to our high standards of quality and reliability and to successfully completing all of our other rig projects," John Kennedy, executive chairman for Lamprell, said.

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