Velesto Completes Removal of Wrecked Naga 7 Jack-Up Rig Off Malaysia

Friday, November 22, 2024

Malaysia’s oil and gas services firm Velesto has completed the wreck removal of the its Naga 7 jack-up rig, which submerged off the coast of Sarawak in Malaysia in 2021.

The removal operations, except for the earlier removed helideck, were carried out by the contractor, Boskalis Malaysia in accordance with applicable regulatory requirements and in close coordination with the relevant authorities.

The operations for the removal of the wreck commenced offshore Sarawak at the end of May 2023 and were conducted over 2 seasons in 2023 – 2024.

They involved removal of the wreck, removal of debris and closing activities, with the remaining recycling activities currently expected to close by December 2024.

To remind, Naga 7 jack-up was preparing to start a drilling operation of a subsidiary of the U.S. oil firm ConocoPhillips in 2021, when it tilted, and subsequently sank.

Velesto said at the time that the incident had happened due to a rapid penetration into the seabed.



The loss of Naga 7 jack-up was recovered from Hull & Machinery Insurers with recognition of insurance claim of $125.6 million (RM 560.9 million) as announced in the company’s quarter results announcement in February 2022.

The company has the Certificate of Completion and release order from the Marine Department on the successful wreck removal confirming that the removal order has been complied with.

Categories: Subsea Industry News Activity Asia Safety & Security Oil and Gas

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