UAE-based oil rigs manufacturer Lamprell has secured a contract from International Maritime Industries (IMI) for the delivery of two jack-up drilling rigs.

Lamprell initially received a letter of intent (LoI) from the Saudi Arabian joint venture (JV) for the deal in late December 2018.

According to IMI, it will construct the two rigs jointly with Lamprell.

Lamprell values its project share for the two rigs at approximately $350m.

The design of the two Keppel LeTourneau jack-up drilling rigs is based on the Super 116E design.

Lamprell CEO Christopher McDonald said: “We are delighted to have secured the formal award for the first two jack-up rigs as part of our partnership with IMI and expect to host a substantial number of Saudi nationals during the course of the project in our facilities as part of building IMI’s capabilities.

“The maritime yard in Saudi Arabia is a significant part of the country’s economic ambition and we are honoured to play a role in its realisation.”

The companies expect the project to start immediately. Lamprell will receive approximately $87.9m, which is 25% of the total project value, by the end of this month.

They will complete the first rig over two years, while they will hand over the second rig three months after the delivery of the first.

Lamprell said: “The down payment puts the group in a stronger net cash position as we begin 2020 even when taking into consideration the $25.8m equity contribution to our IMI investment which we anticipate to be made in Q1 2020.”

In June 2018, the company announced that it is in a JV with Saudi Aramco, Bahri and Hyundai Heavy Industries to develop the major maritime yard International Maritime Industries.