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

Friday, March 27, 2020
 Illustration only; A jack-up rig next to an offshore platform  - Image by bomboman -AdobeStock

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

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Hanwha Ocean Marks Entry into Deepwater Drilling Market with First Drillship

Hanwha Ocean Marks Entry into Deepwater Drilling Market with First Drillship

‘Ultra-Mega’ Offshore Deal for L&T at QatarEnergy LNG’s North Field Gas Scheme

‘Ultra-Mega’ Offshore Deal for L&T at QatarEnergy LNG’s North Field Gas Scheme

ADNOC Signs 15-Year LNG Supply Deal with Osaka Gas for Ruwais Project

ADNOC Signs 15-Year LNG Supply Deal with Osaka Gas for Ruwais Project

ADNOC Secures LNG Supply Deal with India's BPCL

ADNOC Secures LNG Supply Deal with India's BPCL

Initial Drilling Results Raise Questions on South Korea’s Offshore Gas Viability

BP to Help Boost Oil and Gas Output at India’s Largest Producing Field

CNOOC’s South China Sea Oil Field Goes On Stream

Current News

Indonesia's Medco Starts Production at Natuna Sea Fields

Indonesia Grants Approval to Kuwaiti Firm for Anambas Block in Natuna Sea

ADNOC’s XRG Partners Up with Petronas for Offshore Gas Block in Caspian Sea

Valeura Energy Greenlights Wassana Oil Field Redevelopment off Thailand

Scarborough FPU's Topsides and Hull Come Together in Major Engineering Feat (Video)

Shell-Reliance-ONGC JV Complete India’s First Offshore Decom Project

The Future of Long-Idle Drillships: Cold-Stacked or Dead-Stacked?

TMC Books Compressors Orders for FPSO and LNG Vessels

MODEC, Sumitomo Partner Up for Delivery of Gato do Mato FPSO

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

photo

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