Lamprell to Compensate Ensco for Delay in Delivery of ENSCO 140

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.

Have a news tip? Share it with Rigzone!


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit

Our Privacy Pledge

More from this Author
Rigzone Staff
e-mail us at
 -  Shell to Sell Gabon Onshore Assets for... (Mar 24)
 -  Industry Pros Gather for Offshore Achi... (Mar 24)
 -  Statoil Makes North Sea Oil, Gas Disco... (Mar 24)
 -  Report: Hiring Managers See Salaries S... (Mar 23)
 -  Repsol Chooses Atlas for Onshore, Offs... (Mar 23)

Most Popular Articles

From the Career Center
Jobs that may interest you
Expertise: Storeman|Warehouse Person
Location: Lovell
Expertise: Heavy Machinery Operator|Rig Mover|Truck / HGV Driver
Location: Midland, TX
Staff Project Controls Specialist (San Diego, CA)
Expertise: Planner / Scheduler|Project Controls
Location: CA 92037, United States, CA
search for more jobs

Brent Crude Oil : $50.56/BBL 0.15%
Light Crude Oil : $47.7/BBL 0.70%
Natural Gas : $3.05/MMBtu 1.32%
Updated in last 24 hours