Tuesday, 17 January 2012

2 Contractors Missing As Chevron Nigeria Rig Continues to Burn

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As just reported, A rig drilling for Chevron Corp.'s (CVX) Nigerian subsidiary continued to burn Tuesday, while a search for two missing contractors continued.
Initial indications suggest a surface equipment failure on the rig might have caused workers to lose control of the well, Chevron said, though its full investigation continues. The K.S. Endeavor rig, which was drilling an exploratory well for natural gas, is run by FODE Drilling Nigeria Ltd.
The latest accident comes after a separate well leak off the coast of Rio de Janeiro prompted the Brazilian government to call for steep fines for the U.S. oil
company. Chevron has defended its response to that spill, noting the amount of crude released into the ocean was relatively small.
On Tuesday, the Chevron said a sheen of about 13 barrels was seen around the Endeavor site, which is about six miles offshore in about 40 feet of water. Part of the rig had collapsed and continued to burn through late Tuesday, the company said.
Chevron has meanwhile contracted a Transocean Ltd. (RIG, RIGN.VX) rig to start drilling a relief well and has stopped production at its nearby North Apoi platform, which produces about 2,000 barrels a day, as a precaution.
Chevron's Nigerian unit owns 40% of the well, while the Nigerian National Petroleum Corp. has a 60% interest.
The company reported 152 workers had safely evacuated from the area, while two workers remained hospitalized due to minor burns.
Shares were recently off 22 cents at $106.50 after hours. The stock is up 15% over the past year.
Source: The wall street jornal

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