Fire-Ravaged West Atlas Condemned by Insurers

The West Atlas jackup drilling rig has been formally condemned by its insurers following a fire on PTTEP Australasia's Montara Well Head Platform that took place between November 1-3 2009.

Seadrill is responsible for the removal of the West Atlas drilling rig from the Montara field and has adequate insurance coverage to fulfil this obligation.

Seadrill has started the process of assessing the damage to the West Atlas' drilling package and superstructure resulting from the fire.

Prior to the fire, the drilling package was located above and separate from the Montara Well Head Platform. It now appears to be partially resting on the Montara Well Head Platform.

It is uncertain at this time how long it will take to remove the West Atlas from the Montara field. The drilling rig will require detailed inspection by a range of structural and equipment experts. The removal process will be developed and managed by specialist contractors familiar with such operations in liaison with relevant regulatory authorities in Australia.