Naga 7, a jack-up drilling rig that sank earlier in May as it prepared to start drilling for ConocoPhillips off the coast of Malaysia, remains submerged at the site, Velesto, the owner said on Monday. , adding that he had sent a notice of abandonment to insurers. .

The incident occurred on May 3, after one of the platform’s legs entered the formation of the ground while lifting up at Salam-3 well off the coast of Sarawak for ConocoPhillips. The platform tilted and, subsequently, on May 4, 2021, sank on the site.

At the time of the incident, drilling activities had not started and no wells were drilled. As previously reported, all 101 staff on board were transferred to shorts.

Two days after the sinking of the platform, Velesto said it was unable to estimate the overall financial impact on the Group of this incident, but expects the damage to be mitigated ” because the platform is properly secured “.

As a reminder, Velesto announced at the end of March that it had obtained a drilling contract for the platform with ConocoPhillips in Malaysia. The estimated value of the contract is approximately $ 8 million.

Under the contract, ConocoPhillips was to use the jack-up rig built in 2015 and designed by Gusto to drill up to three wells, with start-up expected in the first half of 2021.

The Naga 7 is a three-legged jack-up delivered by China Merchants Heavy Industries in 2015. The platform was built according to a GustoMSC design. It has a drilling capacity of 30,000 feet (9,144 meters) and a nominal operating water depth of 375 feet (114.3 meters).

“Sufficiently covered by insurance”

“The site of the incident is currently being monitored for safety and any potential negative impact. The company is investigating the incident and evaluating options. The platform is properly covered by insurance, ”Velesto said Monday.

“The incident area is secured while the Group works with the insurers and the Protection & Indemnity Club (P&I) [Skuld, according to VesselsValue ] on the way forward.

“The platform and other related responsibilities are suitably covered by Hull & Machinery Insurance and the P&I Club, respectively.” As insurance claims arise, Velesto Drilling Sdn. Bhd, as an insured under the H&M policy, issued a notice of abandonment of the submerged platform, Naga 7 to H&M insurers on May 31, 2021, in accordance with H&M policy and are currently awaiting their response, ” Velesto said.

The company did not specify how much it expected to recover from the insurance company. VesselsValue had valued the platform at $ 42.63 million per day before the incident.

As for the rest of its fleet, Velesto said on Monday that three of its six available jack-up drilling rigs were operating, with another unit expected to start mobilizing by mid-June.

“The remaining two platforms are offered for a number of ongoing tenders,” Velesto said.

“In Malaysia, while most of the drilling contracts for the year have been awarded, there are a small number of new contracts expected to be awarded and awarded during this year. The Group is preparing to participate in these tenders to further improve the use of assets, ”said the company.

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