Dubai based rig builder and construction firm Lamprell is hoping work in the Middle East will help it buffer the downturn.
The firm currently has seven concurrent jackup rigs being constructed at its Hamriyah yard, a record for the group. As a result, over the last few months, the group has increased its project workforce by approximately 1500 people.
But, new orders are not flowing in fast, rig refurbishment work is subdued compared to last year and the firm is seeing increased used of its facilities by firms for stacking rigs.
The firm says its exposure to the Middle East should be of benefit to its current and near-term business performance, however, with a number of "major regional projects for conversion into backlog" in the pipeline.
Indeed, Lamprell recently agreed with its largest client, the National Drilling Company of Abu Dhabi, to extend the outstanding two options and a new additional one, on its next jackup rigs, now due to expire at the end of the first quarter of 2016.
Lamprell's outgoing CEO James Moffat said: "While Lamprell isn't immune to on-going headwinds in the oil and gas markets, we are pleased to see that our early implementation of the efficiency measures under Project Evolution has positioned the group to be competitive, which
will be key for our future success. These actions have allowed us to retain and even build our project workforce, improve our efficiency levels to maintain operational performance, and remain commercially competitive in an environment of increased pricing pressure. From this position of relative strength, we remain positive about Lamprell's longer term prospects as the pipeline is strong with a firm focus on conversion."
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