Saudi Arabia Joint Venture

6 September 2012

Lamprell

("Lamprell" or the "Group")

Lamprell forms a Joint Venture to expand operations in Saudi Arabia through the Shoaibi Group and AYTB

'Lamprell Arabia' to provide comprehensive services to the land rig sector

Lamprell (ticker: LAM), a leading provider of diversified engineering and contracting services to the onshore and offshore oil & gas and renewable energy industries in the Middle East, has signed a joint venture agreement with Shoaibi Group, a Saudi industry and energy services provider, and Al Yusr Townsend and Bottum L.L.C ("AYTB"), a Saudi integrated industrial, technical and logistical services provider, to form Lamprell Arabia Ltd.

The Joint Venture, which will be based in Al Khobar in the oil rich Eastern province of Saudi Arabia, intends to establish a presence for new build fabrication, refurbishment and repair of land drilling rigs in Saudi Arabia, by combining Lamprell's expertise in this sector, Shoaibi Group's strong experience in the Saudi onshore and offshore market and AYTB's operational support facilities and multi-disciplinary workforce. Lamprell Arabia Ltd. will offer new build fabrication, refurbishment and repair of Saudi land rigs, ancillary fabrication for onshore assets and services on Saudi offshore rigs, with the intention of opening a local workshop in the recently built Shoaibi Group Oil and Gas Park, located in the Industrial Village zone in Dammam, Saudi Arabia.

The Group has been in partnership with the two entities for 11 years through the Maritime Industrial Services Arabia Co. Ltd. ("MIS Arabia") Joint Venture agreement which was established in 2001 to offer fabrication services for pressure vessels, columns and other specialised process equipment.

Nigel McCue, Chief Executive Officer, Lamprell commented: 

"Saudi Arabia presents strong opportunities for Lamprell in the onshore rig market. As we continue to strengthen our core competencies, this agreement builds on the Group's existing business in the country, furthering our long-term relationships with the two companies and leveraging our expertise in land rig services.

We are particularly pleased to be signing this agreement with two prominent entities that are well recognised in the Kingdom, Al Shoaibi Group and AYTB, whose knowledge of the Saudi Arabian market will complement Lamprell's technical expertise in the oil & gas sector."

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Notes to editors

Lamprell, based in the United Arab Emirates ("UAE"), and with operations throughout the region, has played a prominent role in the development of the offshore industry in the Arabian Gulf for over 30 years and is the regional market leader in the rig market. Lamprell is a leading provider of diversified engineering and contracting services to the onshore and offshore oil & gas and renewable energy industries.

Lamprell employs approximately 11,300 people, including contract labour, across six facilities, with its primary facilities located in Hamriyah, Sharjah and Jebel Ali, all of which are in the UAE. In addition, the Group has facilities in Saudi Arabia (through a JV agreement) and Kuwait. Combined, the Group's facilities provide a total area of over 925,000 m² with 2.2 km of quayside.

Oil & Gas

·; New Build Offshore

·; New Build Jackup Drilling Rigs

·; Rig Refurbishment

·; Engineering & Construction

·; Land Rig Services

Renewable Energy

·; Wind Farm Installation Vessels

·; Transformer Stations (AC & DC)

·; Wind Turbine Foundations

Services

·; Engineering Services

·; INSPEC (NDT, Mechanical & Calibration Services)

·; Sunbelt H2S Safety Services

·; Operations & Maintenance

www.lamprell.com