Lamprell wins Iraq contract

Lamprell, the engineering firm for the oil and gas industry, has won a contract connected to the reconstruction of the oil export infrastructure in Iraq.

The $62m contract, for Singapore firm Leighton Offshore, includes constructing metering equipment and is expected to complete by the end of 2012.

Lamprell will also pocket $27m from the sale of a ship called the Hull 106 as a result of a legacy transaction related to its acquisition of Norwegian firm, Maritime Industrial Services (MIS).

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It's not all been plain sailing for Lamprell however, as the acquisition of MIS also left it with a 10% stake in the KSAM2 rig which suffered a major explosion in West Africa in January. Lamprell says it is confident that insurance for the asset is in order.

Lamprell's Chief Executive, Nigel McCue, said he was pleased with the Leighton deal because Iraq is a "key market" for the firm.

Shares in Lamprell had risen 2.3% by 8:32am.

BS