Lamprell has reached an amicable settlement with Cameron International Corporation (Cameron), a subsidiary of Schlumberger Limited (Schlumberger) in respect of the issues associated with the jacking equipment supplied by Cameron in 2016.
The settlement results in Lamprell receiving a proportion of the remedial costs incurred in rectifying the issues associated with the jacking equipment. After taking account of the outstanding payment to Cameron in respect of the jacking equipment and the settlement, Lampell anticipates its current net cash position will be largely unchanged.
In addition, Lamprell has held constructive discussions with Schlumberger, the owner of Cameron since April 2016, with regards to Schlumberger's 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.
