Velesto probing rig incident, recovery efforts ongoing

Velesto probing rig incident, recovery efforts ongoing
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KUALA LUMPUR (May 4): Velesto Energy Bhd said it is investigating yesterday's worksite incident involving one of its rigs, and is evaluating its options.

"The rig is covered by insurance and recovery efforts are ongoing and monitored," the group said in a bourse filing.

Velesto said the incident involving the Velesto Naga 7 rig occurred at the worksite due to rapid penetration into the formation, whilst operating in offshore Sarawak for a client.

“The rig tilted and subsequently (today), Velesto Naga 7 submerged at the location. Drilling activities have not commenced and no well has been drilled,” the group added.

Velesto said all on-board personnel are safe on the rescue vessels, and the majority of them have been transferred to Miri, while the remaining personnel are in the process of being transferred.

“The company extends gratitude to all involved in the evacuation operation after the incident and the ongoing recovery efforts, including our client and all relevant authorities,” it added.  

Velesto's share price closed unchanged at 16 sen today, valuing the group at RM1.31 billion.

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