ConocoPhillips-Chartered Jack-Up Drilling Rigs Sinks Off Malaysia

A jack-up drilling rig has sunk after one or more of its legs penetrated the seabed off the coast of Sarawak, Malaysia on Monday, Malaysia-based drilling contractor Velesto Energy has confirmed.

All 101 personnel on board the Velesto Naga 7 were transferred to rescue vessels immediately after the incident and no injuries are reported.

The Velesto Naga 7 was operating at the Salam-3 well for customer ConocoPhillips at the time of the accident. Velesto said the incident occurred due to rapid soil penetration, which caused the rig to list and subsequently sink. The company said the rig is now fully submerged at the location.

Drilling activities had no yet commenced and no well had been drilled at the time of the accident, Velesto said.

“All the relevant authorities have been duly informed and we are currently monitoring the incident location for any potential adverse impact,” Velesto said in a statement published to its website.

“The Company is investigating the incident and evaluating recovery options. While the rig is covered by insurance, potential recovery efforts are ongoing and monitored.”

Among the 101 personnel rescued, 85 have already arrived in Miri, Sarawak, while the remaining 16 are en route to Miri and expected to arrive on Wednesday.

“All persons on-board have been safely evacuated off NAGA 7 with no known injuries,” a spokesperson for ConocoPhillips said.

Naga 7 is one of seven “wholly owned premium jack-up drilling rigs” in Velesto Energy’s fleet.

The Salam well in block WL4-00 is operated by ConocoPhillips, which owns a 50% stake along with Malaysian energy producer Petronas.

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