Specialist oil and gas engineering group Lamprell (LSE: LAM) confirm it has received final payment from BaseDrill Alpha Ltd and it has duly delivered its first new build drilling barge, BassDrill Alpha. The FTSE250 constituent finalised re-negotiations for the final payment in November, agreeing cash and equity payment valued at US$60 million.
The US$60 million final payment represents a US$23 million writedown on the original price agreed between Lamprell and BassDrill Alpha Limited.
The payment consists of US$55 million in cash and 28,000,000 shares in BassDrill, representing 20% of BassDrill’s equity. The final payment relates to the first of two self erecting tender assist drilling units.
The contract was initially commissioned in June 2008, as a lump sum turnkey contract for US$204.5 million. Lamprell also has option agreements in place, granting it the option to sell the BassDrill equity at predetermined prices.
Disclosure: The author holds no positions in the company