Chevron Provides Update on Rig Incident Offshore Nigeria

17.01.2012  |  Business Wire

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 underway, 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.