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Lamprell Intends Stake Divestment in Oil and Gas Business

UAE-based offshore construction and fabrication specialist Lamprell has pushed back the publication of its financial figures for the year 2021 as it goes over potential financial and strategic options. One of the options that emerged recently is the potential sale of a majority stake in its Oil & Gas business.

 

In its latest statement, the company said it has received an early-stage proposal for a potential sale of a majority stake in its Oil & Gas business and has entered preliminary discussions with an interested party.

 

The divestment could be part of Lamprell’s financial strategy it unveiled at the start of the year which may include additional equity, monetizing assets, project-specific financing, including small working capital facilities with Saudi banks, and hybrid facilities to conclude these options in the second quarter of 2022.

 

As part of the reorganization in January, the company was segmented into three distinct business units, Renewables, Digital, and Oil & Gas. These reflect Lamprell’s recent track record as one of the leading providers of fabrication services to the renewables industry.

 

Since 2017, the company has fabricated over 100 foundations for the UK's flagship offshore wind farms, with serial production for renewables projects becoming a core area of expertise for Lamprell.

 

At the same time, the Group has accelerated its focus on digital innovation and continued to advance its traditional business of providing jack-up rigs and related energy infrastructure to the oil & gas industry, with a strong competitive position in the Arabian Gulf.

 

The direction is also strengthened by recent deals from the Oil & Gas and Renewables industries. The company has received limited notice to proceed from the Saudi-based contractor, Bas Global Marine Services (BGMS), on the construction of multiple jack-up lift barges and delivery by the second half of 2023.

 

It has also signed a Moray West Offshore Wind Farm capacity reservation deal with Ocean Winds, a 50-50 joint venture between EDP Renewables and ENGIE, securing capacity at Lamprell’s Hamriyah yard for the work as the project moves towards a financial close and full contract award.

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