Rig Sinks After Incident Offshore Sarawak

Oil & Gas

The board of directors of Velesto Energy Berhad has revealed that an incident involving its Naga 7 rig has occurred offshore Sarawak.

The incident was said to have happened at a worksite due to rapid penetration into a formation on May 3 while operating for a client. Naga 7 tilted and subsequently submerged on May 4, the Velesto Energy board outlined. Drilling activities had not commenced at the site and no well has been drilled, the board highlighted.

“All personnel on-board are safe on the rescue vessels, and [the] majority have been transferred to Miri, Sarawak,” the board said in a statement posted on its website.

“The remaining personnel are in the process of being transferred … the company is investigating the incident and evaluating options. The rig is covered by insurance and recovery efforts are ongoing and monitored,” the Velesto Energy board added.

“The company extends gratitude to all involved in the evacuation operation after the incident and the ongoing recovery efforts, including our client and all relevant authorities,” the board went on to state.

On March 26, the board of Velesto Energy announced that Velesto Drilling Sdn Bhd had secured a letter of award from ConocoPhillips Sarawak Limited and ConocoPhillips Sarawak Oil Limited for a contract for the provision of jack-up rig services. The Naga 7 was assigned for the contract, which had an estimated value of $8 million and a tentative start date sometime in the first half of 2021.

The Naga 7 is a three-legged 375 foot independent leg jack up cantilever rig designed by GustoMSC. It was delivered in January 2015 and has accommodation capacity for 124 people, according to a rig specification document on Velesto Energy’s website.

Velesto Energy, formerly known as UMW Oil & Gas Corporation Berhad, is a Malaysia based multinational provider of drilling services for the upstream oil and gas sector.

To contact the author, email andreas.exarheas@rigzone.com

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