...
Naga-7 is currently contracted by Conoco Philips when this mishap happened.

Conoco Philips provided Velesto with Geotechnical data, soil boring data, etc. Velesto analyzed data, and accepted the risk. Their insurance company also accepted the risks. Based on the geotechnical data, there should be no issue with jacking up the legs. So, geological uncertainty is taken care off, risk accepted by Velesto & insurance.

Prior to start operation, when the rig arrived at location, they will need to do pre-loading. All the pre-loading loads were planned as per the Geotechnical data. With the planned loads, the legs should be able to withstand the weight of the hull once the legs are being jacked up.

What happened was what the O&G called a "punch through", where instead of the legs able to handle the hull weight and stand firm with the formation support, unfortunately the formation gave away, that caused the legs to rapidly penetrated the soil below (thus the punch through). Now, one leg go deep, while the rest did not. That's why the rig got senget one and eventually sank.

Whose fault is it? Need to do investigation. Is it Conoco Philips fault? ...they already gave the Geotechnical data and Velesto + insurance accepted.

Could argue that the Geotechnical data is not valid...then need to prove.
Could argue human error due to wrong procedures during preloading etc, then insurance wont pay Velesto due to crew error...

So, wait for investigation....how long? It'll take months...plus the rig now is at the bottom of the sea. In the mean time, the future revenue from Naga-7 is gone. Salvage the rig? too expensive at that water depth....most probably will become artificial reef.

If it happens due to human error during pre-loading...will the insurance pay?
still under investigation...

agreed

PNB owns 60% of Velesto....now PNB also pening kapala, an asset gone

Naga-7 mishap will reduce future short term revenue....it'll be an instant impact. Insurance payment will not be instant impact

so, investigation will take some time... i think it'll be years before decision to pay or not

if evidence clearly show that it's all due to rig crew error, will the insurance pay Velesto?

true...investigation will take time...plus the rig is now submerged... insurance claim will be years...and if there's any drilling rig crew error during preloading of the rig prior to operation that caused the rig to punch through and sink, then there's no way insurance will pay.

Thank God all crew are rescued and safe....that's the main point

now Naga-7 has become an artificial reef for aquatic animals

if only I can attach photos in here....haha

Naga-7 already sank

latest news

Naga 7 already sank and submerged under water

...
I wonder how low can the price go down before it stabilizes....
I think the rock bottom price will hover for quite some time pending on improvement of flight availability & Covid cases.

If all OK, this is a good point to enter...

Sapura Energy appoints former Shell Malaysia and Technip chiefs to its board


https://www.theedgemarkets.com/article/sapura-energy-appoints-former-shell-malaysia-and-technip-chiefs-its-board

https://www.google.com/amp/s/www.malaymail.com/amp/news/money/2021/04/28/research-firms-remain-positive-on-sapura-energy/1970080

0.60 is always much more yummy than 1.20 (referring to Maxsuper)

under current circumstances, I think 0.885-0.89 is still consider high. Could go lower I think.

...
Due to the current situation i.e Covid cases increase, travel restriction etc, I think it's possible that AA to drop to 0.50 - 0.60 range. Other people might think otherwise. All opinions are accepted for discussion.

Will vaccine prevent further infections? Folks with vaccine, they can still get infected just that the symptom or effect to the body will not be serious. The vaccine helps the body to fight the virus. However, the virus is still in the body and can infect others. Unless it's going to be like SARS or MERS where the virus just gone at one point. If not, we will need >80% vaccination to prevent serious outbreak.

remember....in stock market....the rock bottom price when it is good to buy can never be predicted. You might think 0.50 is the rock bottom price, but it still could drop to 0.40 and so on...

just trade with cautious...take everything into consideration.

...some investors are prepared to stay with AA even if it takes a long time to recover...not an easy feat to go through life...and that if AA survives this tough times

tough luck AirAsia with the travelling recovery

https://www.nst.com.my/news/nation/2021/04/683252/r-naught-upward-trend-sees-malaysias-covid-19-situation-deteriorate

https://oilprice.com/Latest-Energy-News/World-News/Oil-Demand-Boosted-By-Highest-Number-Of-Flights-Since-COVID-Started.html

https://oilprice.com/Latest-Energy-News/World-News/Oil-Demand-Boosted-By-Highest-Number-Of-Flights-Since-COVID-Started.html

Rigs currently on contracts = Naga-2, Naga-5, Naga-4, Naga-7 & Naga-8
Rigs not currently on contract = Naga-3 & Naga-6

The question that public don't have the visibility right now is, how long will the rigs on contract to continue be on contract for the next 1 year?

Is it going to be a 1 well deal and then back on stack again? or is it a long term basis? or mid term basis? That will reflect the revenue etc.

I wonder.... Velesto's QR +/- RM500 mil loss but share price didn't even bulge.

Does it matter now if the QR report is bad, if investors/traders think that the future is bright?

Nice to hear others feedback.

"The facilities have a tenure of seven years and are guaranteed by Sapura Energy. It comes with the condition that its largest shareholder, Permodalan Nasional Bhd (PNB), continues to have over 33% stake in the oil and gas (O&G) outfit in the period. PNB currently holds a 40.1% equity interest in the company."

PNB will always be there...

https://www.theedgemarkets.com/article/sapura-energy-redeems-rm7b-multicurrency-sukuk-programme-early

Surprised.... thought with the bad Q4 the price will drop like a rock.... still maintaining 0.17

For traders, the technical charts & market sentiment are your guides...

Sapura Energy is in a good hand... give him some time. For investors, this company that you are investing in is being led by a capable leader.

Visionary & Strategist who demands results. And he got his results at both Petronss & Shell.

DMAT is a legend in the O&G in Malaysia

Ex VP Petronas & Ex Chairman Shell Malaysia

There are reasons why Anuar Taib (DMAT) rose so fast when he was in Shell & Petronas...he's a visionary and he demands results.

So rest assured SAPNRG investors, DMAT always delivers.

His house is in Valencia, Bdr Sri Damansara area... maybe one of the forumers here is his neighbors. You can look him up & get to know him.

For us in the O&G industry, DMAT is a legend...so, for long term investment, I'll be pumping in more fund in my overall investment in SAPNRG.

“Our other ‘buy’ calls are Sapura Energy, which will complete its RM10 billion debt restructuring package soon and position the formidable EPCIC group to secure fresh global orders; and Petronas Gas, which offers highly compelling dividend yields from its optimal capital structure strategy and resilient earnings base.”

https://www.thesundaily.my/business/solar-wind-power-to-drive-renewable-energy-growth-this-year-FK7369373

No prob bro/sis...I'be been working in the O&G industry almost for 30 years already & I'm "investing" in Velesto. Not trading.

So, I feel the need to provide the correct info to make sure everybody is clear on the facts rather than listening to assumptions.

If someone says something correct as per my knowledge in tbe O&G, I keep quiet lah or I concur. If it's contradict with my knowledge & experience, then I will give my view & opinion.

Not to look down on ppl, but I will listen to a doctor if it involves my health or listen to my mechanic if my car is broken, as I dont have the knowledge in these industries.

When O&G cycle is trending up:
1) Petronas & other oil companies will commit CAPEX to increase or maintain Production. This will mean increase in drilling activities.
2) Drilling rigs demand goes up
3) Petronas' only shareholder is govt of Malaysia.
4) Govt of Malaysia's investing arm is PNB, which owns 60% of Velesto.
5) Petronas' mgmt will look bad if drilling activity increases and they hire foreign rigs while Velesto's rigs sit idle.
6) With current uptrend in Oil prices, Velesto's rigs will have higher priority in Petronas operations compared to foreign flagships.
7) Bottomline, revenue will be coming, which can contribute to profit if Velesto can keep the operating cost down.
8) Velesto is suitable for investment when O&G cycle is trending up.

If this continues... middle east stability affected... supply can be an issue... but, it'll be good for crude oil price.
P/S : love hate relationship coz the RON95/97 also will go up.... so how la?

https://us.yahoo.com/news/yemens-houthis-drone-attack-hits-124711874.html

Can ask if you have any queries... if i have time i can answer

Velesto only have jack up rigs...jack up rigs can only operate in a certain water depth. In deepwater, can only use semi submersible rig or drill ships. If seabed not suitable for jack-up rigs, have to use Tender assisted drilling rig (TADR). This design Sapura Energy monopolize... they have a bunch of TADR.

Sabah deepwater have to use semi submersible. If water depth OK, can use Velesto's jack up rigs. Suriname is all deepwater - thats semi sub or drillship.

Key point: Petronas operations will ramp up Q2/Q3 2021 and 2022. PNB owns 60% Velesto. Govt will for sure one way or another ensure that Petronas utilize local rigs...i.e Velesto, rather than go with Seadrill, Aban, Transocean, Borr (all foreign rigs).

So, Velesto's rigs utilization will go up... be patience while the oil price go up with more demand after covid.

When drilling rigs are not working, they are either warm stacked or cold stacked. Warm stacked is with very, very minimal crew to do maintainance say once a week. Cold stacked no crew needed. So, very minor manpower cost when rig not operating.

SuperPanda: what good news, total 7 rigs, 3 not working, 3 end contract last dec’20, left 1 with contract

now got 2 new contract, total year 21 only 3 are working. pay salary also not enough bcoz have 4 rigs to maintain without jobs
19/03/2021 10:05 PM

https://www.theedgemarkets.com/article/velesto-clinches-rm85m-drilling-services-project-petronas-carigali

For long term investors, be patience lorrrr

KFC takeaways will happen, short seller will start timing their moves... so, price will retract within this week...maybe to range of 0.155 - 0.160. It could shoot up to more than 0.17, but short term will retract.

For long term investors, don't ejaculate yet... hold hold hold

When oil price was at USD50, SAP was at 10 sen.
Now oil price almost USD70, SAP is around 15 sen.

I can understand some frustrations.... it was easier & so quick for SAP to drop from 28.5 sen to 7-8 sen when oil price dropped from USD64 to USD30, but slow to climb back up when it shoot to almost USD70 now.

Hope is the key for all the investors here... hoping the big funds come in drove and/or sharks start to goreng. But as somebody said in here... with SAP now, the upside potential is huge and risk is on the low side due to current oil price trend..... so just ride the roller coaster lorrrr until the end.

Situation: all operators (oil company) now is aiming to use drill rigs with offline capabilities for serious cost savings (such as Borr rigs). Fact is all Naga rigs are not equipt with offline capabilities & are lagging behind.

But, PNB owns 60% of Velesto. If other operators such as Vestigo, Petrofac are not keen on using the Naga rigs, then PNB via govt's hammer will definitely TELL Petronas to use Velesto's rigs no matter what.

Reality... there will always be Naga rigs operating for Petronas' projects. Most likely at least 4 Naga rigs will have jobs in Petronas at high drilling activities.

Saudi has only one objective - higher prices at any cost

https://realmoney.thestreet.com/investing/energy/saudi-arabia-has-only-one-objective-higher-prices-at-any-cost--15587437?puc=yahoo&cm_ven=YAHOO

https://oilprice.com/Latest-Energy-News/World-News/Aramco-CEO-Sees-Crude-Demand-Picking-Up-Quickly.html

Demand is reduced is what we call as cyclic dickhead. Otak kecik bessr size dick memang cannot think forward more than 2 days