KS Drilling Slapped with $24M Claim, Contract Termination after Rig Incident

Friday, March 27, 2020

Singapore-based drilling contractor KS Drilling has seen its offshore rig contract cancelled, and has been slapped by a $23,5 million claim after its drilling rig in February was involved in an incident offshore Indonesia.

The Java Star jack-up rig was involved in an incident which occurred at around 4pm, on 29 February 2020, in the Java Sea southeast of Bawean Island. 

According to the owner, there was a rapid penetration of a leg into the seabed during the jacking-up preloading process, after which a well on the nearby platform caught fire, which was subsequently extinguished.

KS Energy on Friday said it had received a notice of contract termination and letter of demand from the customer, Camar Resources
Canada Inc. (“CRC”) effective from March 23, 2020.

"CRC has claimed for inter alia costs, damages and losses in relation to the Incident of US$ 23,494,961," KS Energy said.

"The consortium has appointed lawyers to advise them in this regard. The consortium shall defend against the termination and claim vigorously," the company added.

KS Energy said: "The expected value of the contract was originally estimated to be approximately US$4.9 million. The shorter contract is not expected to have any material effect on the earnings per share and net tangible assets per share of the company for the financial year ending December 31, 2020."
The KS Java Star rig is a Friede & Goldman L-780 jack-up built-in 1981 and upgraded in 2012.

Categories: Energy Drilling Asia Rigs Shallow Water Safety & Security Indonesia

Related Stories

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

Fugro Expands Geotechnical Testing Capabilities in Indonesia

Fugro Lands Deepwater Gas Field Job in Southeast Asia

Velesto’s Jack-Up Rig Set for Drilling Job off Indonesia

Borr Drilling Bags Three New Assignments for its Jack-Up Drilling Rigs

CNOOC Makes Major Oil and Gas Discovery in South China Sea

Shell Hires Noble’s Drillship for Work in Southeast Asia

Current News

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com