Emirati rig company Lamprell secures contract to help build components to help tap into one of Norway's biggest oil fields. File photo by Maryam Rahmanian/UPI | License Photo
DUBAI, United Arab Emirates, Sept. 26 (UPI) -- After touting its resiliency in a depressed market, Emirati rig builder Lamprell said it secured work for one of the largest oil fields off the Norwegian coast.
Lamprell said it landed a contract to help revamp a part of a support vessel for the Johan Sverdrup oil field off the coast of Norway. Construction begins at a shipyard in the United Arab Emirates, with installation slated for Norwegian waters with the help of domestic companies there.
"While the market impacted the number of rig refurbishment and upgrade projects during 2016, this award demonstrates Lamprell's continuing ability to compete in this sector," CEO James Moffat said in a statement.
Developed over a series of phases, operator Statoil said the Johan Sverdrup oil field should account for up to 25 percent of total Norwegian petroleum production once at peak capacity. At least half of the secondary construction contracts for Johan Sverdrup are slated for Norwegian companies.
By its latest estimate, Statoil said the project will be competitive as long as crude oil prices hold above the $30 per barrel mark. Last week, Lamprell said it was able to post a profit during a rough patch for the industry and was in a strong position to ride out the oil market storm.
For the six months ending June 30, the company said its revenue was up 28 percent to $451 million. For 2017, Lamprell said it was expected to post revenue between $400 million and $500 million.
Work for Johan Sverdrup is scheduled for completion in the second half of 2018. The contract for Lamprell is valued at $90 million.