Atwood Oceanics reports rig damage

Houston-based offshore drilling contractor Atwood Oceanics Inc. announced Monday that on July 25, 2004 the Atwood Beacon, while positioning for its next well offshore Indonesia, incurred unexpected rapid leg penetration on two of its legs.

Atwood said the rig is currently stable and will be towed to a shipyard in Singapore for inspections and repairs.

?All personnel have been evacuated from the rig with no injuries and there were no environmental consequences,? the company said in a statement.

According to the statement, Atwood has insurance to cover the cost of repairs to the rig in excess of a $1 million deductible and has Loss of Hire Insurance coverage of $70,000 per day for 180 days, which commences after a 30-day waiting period.

On May 19, Atwood said ConocoPhillips Indonesia had given a commitment to utilize the rig a drilling program offshore which includes the drilling of three firm wells plus options for four additional wells. The three firm wells have a combined expected duration of ninety days, with the option wells, if exercised, having an expected duration of thirty days each. (robert)