Page 11 - MEOG Week 31

MEOG
neWs in brieF
MEOG
Gas
Leviathan platform decks heading to Israel
Noble Energy’s deepwater Leviathan development o shore Israel remains on track for start-up by the end of this year.
e production decks have sailed from the Gulf Coast fabrication yard for Israel.
During 2Q work on the EMG pipeline system, which will export gas to Egypt, con rmed pipeline integrity and ow capacity.
Noble expects to close its acquisition of an interest in the pipeline during the current quarter.
Also, the company’s second quarter gas sales from its elds o shore Israel were above expectations at 210 MMcfe/d. is was due to a combination of high seasonal gas demand and lower than planned maintenance.
O shore Equatorial Guinea an additional well should come online during 4Q at the Aseng oil eld.
OFFSHORE MAG
serViCes
Lamprell provides update
e Belfast-based assembly of the nal jackets for the East Anglia One project has now completed. All 60 jackets have been installed by the client and the parties are in discussions around commercial close out of the project.
Fabrication on the Moray East project
is progressing well, safely and in line with the schedule announced in the Group’s Full year Results on 21 March 2019. Steel cutting
commenced in June and welding works
are now well underway. yard activities for this project are bene ting from the recent incremental capital investments made to improve project e ciencies and throughput for jackets in the renewables sector.
e rig refurbishment segment continues to attract a good ow of work. In the rst
six months of 2019, we completed nine refurbishment projects and received eight rigs in our yards for various refurbishment works, as well as adding two new contracts which are due to arrive in our yards during the second half of the year. We are currently stacking 12 rigs in Sharjah and Hamriyah, the majority are warm stacked and we see a gradual, albeit small, increase in the scope of work performed.
Construction at the IMI yard in Saudi Arabia is progressing. Dredging and all
other ground improvement works have been completed with the site now handed over to EPC contractors for construction works. All four of the fabrication zones at the yard are expected to be commissioned for operation in late 2022.
We continue to engage with the client on the speci cs of the two newbuild jackup rigs from the IMI joint venture.
Net cash has reduced to approximately uS$50 million as at 30 June, subject to audit, but is likely to improve in the second half of 2019 due to timing of payments on current projects.
Lamprell’s existing debt facility is due to expire in August 2019 and we have secured an extension to the current facility until mid December 2019 as we negotiate a new facility with a syndicate of local and international banks to provide su cient headroom for the business.
Due to the delays with a number of
awards, we narrow our revenue guidance for 2019 to uS$275-350 million. We currently have coverage for 100% of the bottom end
of the range, with the high end of the range being contingent on new awards. Despite
the improving outlook, we will not see a
year on year improvement in the nancial performance of the business due to a combination of the previously mentioned delays in contract awards and the retention of capability to execute the expected pipeline of new business.
At uS$6.3 billion, the bid pipeline is
strong in our target sectors and in line with previously reported gures. Proposal activity remains high although the pace of new awards remains slow. Bidding in the renewables industry continues to be buoyant where we are targeting a number of opportunities which we expect will come to fruition later in 2019 and 2020. We have seen early interest from the Middle East customer base in both jackup and land rigs, which supports previously announced output growth plans from the region in the medium term.
Lamprell will announce its 2019 interim nancial results on 19 september 2019. LamPreLL
ADES secures US$80 million
long term loan facility in
KSA
ADES International Holding PLC, a leading oil & gas drilling and production services provider in the Middle East and North Africa (MENA), is pleased to announce that it has secured a SAR 300 million (uS$80 million) Long Term Loan Facility from National Commercial Bank, a leading Saudi-based nancial institution.
Week 31 06•August•2019
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