Offshore rig builder Lamprell has reached a settlement with Cameron, a subsidiary of Schlumberger, regarding issues with jacking equipment supplied by Cameron in 2016 for the Ensco 140 jack-up rig.
To remind, Lamprell’s delivery of the Ensco 140 jack-up rig was delayed in June 2016 due to a technical issue with essential jackup rig equipment supplied by Cameron.
Following a resolution of the equipment problem, the rig was delivered to its owner in August 2016 , and the UAE-based yard and Ensco settled all claims arising from the late delivery.
The settlement between Ensco and Lamprell included a deduction of $25 million from the final milestone payment in respect of late delivery. As part of the settlement, Lamprell also agreed to 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.
Lamprell said on Tuesday that it would receive a proportion of the remedial costs incurred in rectifying the issues associated with the jacking equipment.
According to Lamprell, after taking account of the outstanding payment to Cameron in respect of the jacking equipment and the settlement, it anticipates its current net cash position will be largely unchanged.
As for the rig, it is of a Cameron Letourneau Super 116E design. It can operate in a water depth of 340 feet and is upgradeable to 400. The rig’s maximum drilling depth is 30,000 feet.
In addition, Lamprell has held discussions with Schlumberger with regards to its land rig fleet requirements. These talks led to Schlumberger awarding to Lamprell the contract to fabricate two land rigs according to Schlumberger’s rig of the future design for the Saudi Arabian market, and incorporating newly designed drilling equipment. These are being constructed in Lamprell’s existing facilities in the UAE.