Velesto Energy Berhad has provided an update on the Velesto Naga 7 rig, which was revealed to have submerged on May 4.
The company announced on Thursday that the focus remains on rescue, evacuation, and recovery efforts and revealed that all 101 personnel on-board the rig had been transferred safely to Miri, Sarawak.
As of Thursday, Velesto Energy highlighted that it was unable to estimate the overall financial impact on the group from the incident but outlined that it expects this to be mitigated as the rig is “adequately insured”. Velesto Energy said it is working closely with the client and insurers and providing full cooperation to the relevant authorities. The company also noted that other businesses of the group are operating as usual, including the other six rigs in its fleet.
The Naga 7 rig sinkage occurred due to “oil rapid penetration”, according to Velesto Energy, which highlighted back in March that the rig had secured a deal with ConocoPhillips Sarawak Limited and ConocoPhillips Sarawak Oil Limited with a tentative start date sometime in the first half of this year. The contract included the drilling of up to three wells using the Naga 7, which has a drilling depth capability of 30,000 feet and a rated operating water depth of 375 feet, Velesto Energy reveals on its website.
ConocoPhillips did not immediately respond to an emailed request sent by Rigzone on Thursday asking for a statement on the incident.
Velesto Energy’s wholly owned rig fleet comprises the Naga2, Naga 3, Naga 4, Naga 5, Naga 6, Naga 7, and Naga 8 jack-up drilling rigs. The company, which was formerly known as UMW Oil & Gas Corporation Berhad, also has four hydraulic workover units comprising the Gait 1, Gait 2, Gait 5, and Gait 6.
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