Nigeria Jack-Up Fire Update: Hercules Liftboat Caught in Fire, Two Still Missing from Chevron Rig
Hercules Offshore has just reported that one of their liftboats was caught in the fire that originated from Chevron’s KS Endeavor jack-up yesterday offshore Nigeria. Two contractors on board the KS Endeavor are still not accounted for. All 27 crew of the liftboat, Mako, are accounted for. No word on the possible environmental damage as of yet however Chevron says it has deployed well control specialists and drilling experts to the scene.
Here is the latest statements by Hercules and Chevron.
HERCULES OFFSHORE STATEMENT:
HOUSTON, Jan. 17, 2012 — Hercules Offshore (NASDAQ: HERO) (the “Company”) today announced that the Mako, a 175′ class liftboat in Nigeria, was engulfed by a fire that originated on a third-party rig, the KS Endeavor, during the early morning hours on January 16, 2012. The Mako was providing excess storage services adjacent to the KS Endeavor drilling rig at the time of the incident. The incident occurred off the coast of Nigeria, approximately 250 kilometers west of Port Harcourt. All 27 personnel aboard the Mako were safely rescued and transported to a local clinic for medical evaluation and treatment. No major injuries have been reported.
At this time, the Company has not been able to confirm the extent of the damage to the Mako, although visual indication from Company employees at the site indicated that the vessel sustained significant damage. The vessel has an insured value of $8.0 million, subject to a $1.0 million deductible. The deductible would not apply in the event the vessel is a total loss. The Company also carries removal of wreck insurance, subject to a $250,000 deductible.
The Company has notified the appropriate authorities, including the United States Coast Guard.
Chevron Corporation (NYSE: CVX) reports that its subsidiary, Chevron Nigeria Limited, is working to contain a fire that ignited early this morning aboard the K.S. Endeavor, a drilling rig offshore Nigeria operated by FODE Drilling Nigeria Limited. The rig was drilling a natural gas exploration well, located in the Funiwa Field approximately six miles (10 kilometers) offshore and in approximately 40 feet (12 meters) of water.
One hundred and fifty-four personnel were on the rig and an associated barge. Two contractors are still unaccounted for while all others are safe and undergoing medical examinations at an adjacent production platform. Aggressive search and rescue activities continue for the two missing personnel.
“Every effort is being made to find the missing workers. They are our utmost priority,” said Andrew Fawthrop, managing director, Chevron’s Nigeria/Mid-Africa Strategic Business Unit. “We do not know what caused the incident. We are working diligently to contain the fire, which is restricted to the rig. Substantial resources have been deployed including well control specialists and drilling experts. We continue to work in full cooperation with Nigerian authorities and are committed to providing additional information as it becomes known.”
Production from Chevron’s North Apoi platform was shut in due to its proximity to the incident.
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