Velesto will focus on recovery efforts of its rig, Velesto Naga 7, which submerged off the coast of Sarawak on May 4.– Photo via Seafarer Life/Facebook
KUALA LUMPUR (May 6): Offshore drilling company Velesto Energy Bhd will focus on recovery efforts of its rig, Velesto Naga 7, which submerged off the coast of Sarawak on May 4.
In a filing with Bursa Malaysia today, the company said that the “operation of Velesto Naga 7 was interrupted.
“The incident happened due to soil rapid penetration while operating for a client on May 3.”
Drilling activities had not commenced at the site and no well has been drilled.
“All 101 personnel onboard have been transferred safely to Miri, Sarawak,” the company said.
Currently, Velesto is unable to estimate the overall financial impact on the group from the incident but expects it to be mitigated as the rig is adequately insured.
“Other businesses of the group are operating as usual including six other rigs in the fleet,” said Velesto.
The company is working closely with the client and insurers and will provide full cooperation to the authorities, it added. – Bernama