Drilling rig sinks offshore eastern Malaysia

A drilling rig has sunk offshore eastern Malaysia while it was being prepared for work at a ConocoPhillips-operated exploration block.

The NAGA 7 tilted "due to soil rapid penetration" at the WL4-00 site according to its owner, local firm Velesto Energy. All 101 personnel on board were evacuated, and the rig subsequently sank.

Velesto and Conoco said that the NAGA 7 had not begun drilling at the concession, which includes the Salam-1 oil discovery. The rig was manoeuvring into position ahead of a campaign to drill up to three wells. Velesto announced the award of the contract, which it valued at around $8mn, at the end of March.

Velesto describes the NAGA 7 as a premium independent-leg cantilever jack-up rig that has drilling depth capability of 30,000ft and a rated operating water depth of 375ft. ConocoPhillips operates WL4-00 in a 50:50 joint venture with Malaysia's state-owned Petronas.

By Ben Winkley and Tom Fowler