UAE’s Lamprell was awarded a contract from International Maritime Industries (IMI) for constructing two jack-up drilling units, Pipeline Oil and Gas magazine reported.

The contract will be signed after the discussions between IMI, Lamprell and the end user on determining the contract terms, Lamprell said in a statement.

“I am very pleased to receive this letter of intent from IMI for the first two jack-up rigs to be built by IMI and Lamprell. This is a significant step forward for the Saudi maritime yard,” Christopher McDonald, Lamprell CEO, said.

Stringent Schedule G requirements for operation in Saudi Arabian waters will be used to construct the rigs. Lamprell will execute the fabrication work at its Hamriyah yard in the UAE while maximizing Saudi Arabia’s work to around 15% of the work scope.

“The developing relationship between IMI and Lamprell will continue to be enhanced as we construct these rigs and we are excited by the opportunity to collaborate with them on such an innovative and important project,” McDonald added.