United Arab Emirates-based Lamprell plc reported Friday that it has delivered the jackup ENSCO 140 (400' ILC) after a delay in late July for which the shipyard has to pay remedial costs and liquidated damages to Ensco plc for the LeTourneau designed, Super 116E (Enhanced) Class mobile offshore drilling unit.
Lamprell signed an agreement with the client to settle all claims arising from the late delivery of the rig, including a $25 million deduction from the final milestone payment. The firm will also provide additional services for ENSCO 140 and ENSCO 141 (400' ILC) -- now under construction at Lamprell's yard -- including temporary storage as well as grant an extended warranty for the jacking equipment supplied by the original equipment manufacturer, Cameron LeTourneau.
The yard explained that the delay in delivery of ENSCO 140 was caused by failures in the jacking equipment that Cameron supplied and Lamprell plans to recover the remedial costs arising from the technical defects in the jacking equipment from Cameron as well as seeking compensation from the latter.
Following the settlement, Lamprell projected a $25 million decline in its 2016 revenue and a reduced annual profit of around $35 million. Still, the firm retains a positive net cash position and says its balance sheet will be strengthened with the delivery of 6 ongoing rig projects over the next 8 months.
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