| Work Detail |
Offshore drilling unit of Malaysia’s Velesto Energy has completed the wreck removal of its Naga 7 jackup rig, which sank off the coast of Sarawak in Malaysia in 2021.
The incident occurred at the worksite while operating for a client due to rapid penetration into the formation in May 2021, when the rig tilted and subsequently submerged.
The removal operations, except for the earlier removed helideck, were carried out by Boskalis Malaysia.
The operations to remove the wreck commenced offshore Sarawak at the end of May 2023. They were conducted over two seasons, covering removal of the wreck, removal of debris and closing activities, with the remaining recycling activities currently expected to close by December 2024.
Velesto said the loss of the NAGA 7 was recovered from Hull & Machinery Insurers with recognition of an insurance claim of RM560.9m ($125.6m). The cost of wreck removal it added is not expected to affect the group’s finances as covered by Protection & Indemnity Insurance taken by the Group and it does not expect further significant financial or operational impacts arising from the removal activities. |
