Lamprell has received a notice to proceed on the construction of several lift barges for Saudi Arabian marine contractor Baas Global Marine Services (BGMS).
The UAE-based fabricator said it had secured a “large” contract award, in the region of $51-150 million.
The full scope of work relates to the delivery and construction of multiple jack-up lift barges to BGMS.
Under the limited notice to proceed (LNTP), Lamprell will begin early works, including the procurement of materials and mobilisation of the a project management team in anticipation of a full award in Q2 2022.
Work will start immediately, with all activity undertaken at Lamprell’s Hamriyah facilities, and with a target completion during the second half of 2023.
Commenting on the award, chief executive Christopher McDonald said: “We are very pleased to be working on this project in support of BGMS’ contract with Saudi Aramco, a key customer for Lamprell for whom we are undertaking a number of other projects.
“We have a well-established and proven track record for constructing jack-up vessels for use in the offshore energy sector and we are confident of our ability to deliver this project safely and on time.”
BGMS is a subsidiary of BIG Oil & Gas. Founded in 2013 in Al Khobar, it provides various types and classes of marine vessels and utility boats to Saudi Aramco and its offshore contractors.
It currently operates over 15 offshore support vessels and intends to add a further seven jack-up barges, commencing in 2022.
Lamprell issued a trading update last week ahead of its full year results in March, in which it reported revenues of $389m, up 15% year-on-year, although its project backlog at December 31 stood at $343m, down 34% from the $522m at the end of 2020.
However, its total pipeline of opportunities grew to $7.9 billion across oil and gas and renewables as of December 31, 2021, up from $6bn at the end of 2020.
At the time it said a number of award decisions were “imminent”, and pointed to increased pressure on capacity in the supply chain, which will improve its position on bids.
Renewables accounted for $4.6bn, nearly double the $2.5bn it covered at the end of 2020.
Meanwhile oil and gas has seen “improved bidding dynamics” due to the recovery in prices, accounting for $3.3bn of opportunities.
The firm said there has been a “number of large-scale offshore awards” in the Middle East in recent weeks, totalling around $10bn.