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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: CommanderCricket who wrote (162490)1/17/2012 11:04:36 PM
From: pz3 Recommendations  Read Replies (2) of 206148
 
Chevron’s burning rig begins to collapse
PUBLISHED: 17 Jan 2012 10:41:50 |

afr.com

The fire on Chevron’s KS Endeavor rig occurred in the early hours of Monday. Rig and support barge personnel were evacuated from the facilities, says the company.

Two contractors are still missing as an offshore rig exploring possible deep-water oil and gas fields off Nigeria’s coast for Chevron Corp continued to burn on Wednesday, and the oil company said the rig was partially collapsing.

The company is already trying to work out what happened on the rig, the KS Endeavour, which was drilling a natural gas well in 12 metres of water.

Chevron Nigeria is working to contain the fire on the drilling rig operated by FODE Drilling Nigeria. The rig was located in the Funiwa Field approximately 10 kilometres offshore.

In a statement the company said problems with surface equipment led to loss of control of the well while drilling. It said it “cannot estimate how long the fire will continue to burn”.

Chevron has contracted with and is mobilising the transocean rig, Baltic, to commence drilling a relief well. It said the time required to complete the relief well is uncertain, but “could extend for some period”. Chevron is deploying additional drilling experts and well control specialists to Nigeria to assist with well control efforts and the relief drilling process.

A small sheen is visible in close proximity to the well, which the company continues to evaluate. The sheen is estimated at approximately 13 barrels. Production from Chevron’s North Apoi platform remains shut in since it is situated in close proximity to the incident. Total production from the platform was approximately 2000 barrels per day.

Chevron said two workers were missing and 152 others found but gave no further detail on the missing persons.

“We immediately flew out people to the nearby North Apoi platform, and have been helping those needing any medical assistance,” Chevron spokesman Scott Walker said in a statement.

Chevron reports that 152 workers on the rig and an associated barge were safely evacuated. They are now onshore and have been given medical examinations. Two remain hospitalised due to minor burns, while others are being held for further observation. It continues searching for two missing contractors.

“Every effort is being made to find the missing workers. They are our utmost priority,” said Andrew Fawthrop, managing director of Chevron’s Nigeria/mid-Africa strategic business unit. “We do not know what caused the incident. We are working diligently to contain the fire, which is restricted to the rig. Substantial resources have been deployed including well control specialists and drilling experts. We continue to work in full co-operation with Nigerian authorities and are committed to providing additional information as it becomes known.”

Nnimmo Bassey, who runs an environmental watchdog group in Nigeria, said he had received reports from locals nearby that the fire was an industrial incident.

“Workers were trying to contain the gas pressure and they didn’t succeed,” Mr Bassey said.

Nigeria is the fifth-largest crude oil exporter to the US. It produces about 2.4 million barrels of crude oil a day. However, more than 50 years of oil production has seen environmental damage through delta’s maze of muddy creeks and mangroves.

Chevron, based in San Ramon, California, produced an average of 524,000 barrels of crude oil a day from Nigeria in 2010. The company has exploration rights to about 890,000 hectares across Nigeria’s delta and offshore.

Chevron’s Nigerian company owns a 40 per cent interest in the well and the Nigerian National Petroleum Corporation has a 60 per cent interest.
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