Lamprell plc Update on joint venture in Saudi Arabia (9214H)
March 16 2018 - 3:00AM
UK Regulatory
TIDMLAM
RNS Number : 9214H
Lamprell plc
16 March 2018
16 March 2018
LAMPRELL PLC
("Lamprell" and with its subsidiaries the "Group")
UPDATE ON JOINT VENTURE IN SAUDI ARABIA
Lamprell provides an update on its participation in the joint
venture (JV) with its partners, Saudi Aramco Oil Company, the
National Shipping Company of Saudi Arabia, and Hyundai Heavy
Industries Co. Ltd., for the establishment of the major maritime
yard at the Ras Al Khair site in eastern Saudi Arabia.
In relation to the shareholders' agreement, we are pleased to
advise that all conditions precedent have been completed, meaning
that the JV company "International Maritime Industries Company"
(IMI) can formally commence business. An important condition was
the entry by IMI into the loan agreement with the proposed
Government lender, the Saudi Industrial Development Fund. In
addition to the previously mentioned offtake agreements and
significant investment made by the Saudi government in the
facility's infrastructure, the loan agreement is expected be a
cornerstone for the success of the IMI yard.
The construction process at the site is under way with dredging
and associated activities in progress. The partners have made
significant progress in creating the business infrastructure,
including the management organisation, the internal governance
structure and the detailed business plan. This follows the first
capital contribution by each partner in accordance with their pro
rata share and in line with the original drawdown schedule.
Lamprell's first tranche amounted to US$20 million which was
invested in 2017, and will be used to pay for initial start-up
costs of the business including staff hire and long lead item
procurement. Lamprell's anticipated total equity contribution over
the construction period is up to US$140 million.
it is planned that, pursuant to one of the offtake agreements,
ARO Drilling to order 20 jackup rigs from the IMI yard over the
next ten years. Prior to the jackup rig construction zone of the
maritime yard becoming operational, significant component parts of
the first two rigs are expected to be subcontracted to Lamprell's
UAE facilities. ARO Drilling and the IMI have recently selected the
LJ43 rig design collaboratively developed by Lamprell and GustoMSC,
a leading design & engineering company of mobile offshore units
and associated equipment.
Following succesful registration of the IMI joint venture
company, the first IMI board meeting was held in late December, at
which the JV partners agreed to the following key appointments:
Abdallah I. Al Sadaan (Saudi Aramco's Senior VP Finance, Strategy
and Development) has been appointed as Chairman of the IMI board
with Lamprell's Christopher McDonald as Vice Chairman. Tony Wright
is Lamprell's second IMI board member and Fathi K. Al-Saleem has
been appointed as the CEO for IMI.
Christopher McDonald, CEO, Lamprell, said:
"Lamprell has been working closely with its partners on the
establishment of the IMI business over the past few months and we
are very pleased to see such tangible progress towards the
operational phase, now that the conditions under the shareholders'
agreement have been completed. We are proud to be part of this
major project as IMI has the capability of becoming a leading
regional and global service provider to the rig and vessel markets.
A very welcome progress is also the selction of our new LJ43 jackup
rig designed with GustoMSC for the rigs under the offtake
agreement, this will further strengthen Lamprell's position in our
traditional market."
- Ends -
Enquiries:
Lamprell plc
Christopher McDonald, Chief
Executive Officer +971 (0) 4 803 9308
Tony Wright, Chief Financial
Officer +971 (0) 4 803 9308
+44 (0) 7852 618
Maria Babkina, Investor Relations 046
Tulchan Communications, London +44 (0) 207 353 4200
Martin Robinson
Martin Pengelley
Notes to editors
Lamprell PLC, based in the United Arab Emirates ("UAE") and with
over 40 years' experience, is a leading provider of fabrication,
engineering and contracting services to the offshore and onshore
oil & gas and renewable energy industries. The Group has
established leading market positions in the fabrication of
shallow-water drilling jackup rigs, liftboats, land rigs, and rig
refurbishment projects, and it has an international reputation for
building complex offshore and onshore process modules and fixed
platforms.
Lamprell employs more than 5,000 people across multiple
facilities, with its primary facilities located in Hamriyah,
Sharjah and Jebel Ali, all of which are in the UAE. In addition,
the Group has facilities in Saudi Arabia (through a joint venture
agreement). Combined, the Group's facilities cover approximately
828,000 m2 with 1.6 km of quayside.
Lamprell is listed on the London Stock Exchange (symbol
"LAM").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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