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Chevron Provides Update on Rig Incident Offshore Nigeria

SAN RAMON, Calif., January 17, 2012 – Chevron Corporation (NYSE: CVX) said that  an extensive search and rescue effort continues for two contractors who remain missing after yesterday's fire aboard the K.S. Endeavor, a drilling rig offshore Nigeria operated by FODE Drilling Nigeria Limited. While Chevron's highest priority remains the rescue of the missing contractors, the company continues to devote the necessary resources to resolve the rig incident in a responsible and timely manner. 

As previously reported, the K.S. Endeavor was drilling a natural gas exploration well for Chevron Nigeria Limited (CNL). The well is located in the Funiwa Field approximately six miles (10 kilometers) offshore and in approximately 40 feet (12 meters) of water.

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 hospitalized due to minor burns, while others are being held for further observation.

While a full investigation is still under way, Chevron said initial indications point to the possible failure of surface equipment during drilling operations that led to a loss of well control.  The well continues to burn and the rig has partially collapsed.  At this time, the company cannot estimate how long the fire will continue.

Chevron has contracted with and is mobilizing the Transocean rig Baltic to commence drilling a relief well. Chevron 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 2,000 barrels per day.

CNL owns a 40 percent interest in the well and the Nigerian National Petroleum Corporation has a 60 percent interest.

Additional updates on the incident are available at Chevron Updates.

Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

 

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