Lamprell has delayed delivery of a jack-up drilling rig to an unnamed client because of a technical fault found in tests during commissioning at one of its yards.
The rig had been scheduled to arrive in the second quarter but is now scheduled to be delivered in mid-August, the London-listed company said today in a release.
The fault was found in equipment supplied by an original equipment manufacturer (OEM), from whom Lamprell intends to claim costs and damages – legally, if necessary.
“The resultant delay in the delivery means that the group could be exposed to contractual remedies on the project including liquidated damages. However, the board anticipates that the majority of the remedial costs and potential damages exposure as a result of this delay will be recoverable from the OEM,” Lamprell said.
John Kennedy, Lamprell’s executive chairman, said the group’s project team has been working closely with both the OEM’s technical experts and the client’s project team to resolve the issues.
“We are committed to delivering the rig as soon as possible to our high standards standards of quality and reliability and to successfully completing all of our other rig projects,” Kennedy added.
Other than the delayed rig, Lamprell is currently constructing six rigs, which it said remain on schedule.
Nevertheless, the company said it expects the “challenging” market environment to impact its revenues in 2017.
