Hercules Offshore Gets $50 Mln for Damage to ‘Hercules 265’ Rig

Hercules Offshore, Inc. has received payment from its insurance underwriters for the damage to its Hercules 265 jack-up drilling rig which occurred in July this year when a fire broke out on the rig after a gas leakage had occurred.

“The company’s insurance underwriters determined that the rig is a constructive total loss, and the company received gross insurance proceeds of $50 million. As a result of this insurance collection, the company anticipates recording an insurance gain of approximately $31 million in the fourth quarter 2013. The company and its insurance underwriters continue to negotiate the insurance recovery amounts for costs related to the salvage of the rig and certain other insured losses,” Hercules Offshore said in a statement.

To remind, the natural gas leaking from the well in the U.S. Gulf of Mexico ignited July 23, 2013. A total of 44 workers were evacuated from the rig after it experienced a well control incident 55 miles (85km) off the Louisiana coast. No one was on board at the time of the ignition and no one was injured.

Also on December 20, 2013, Hercules Offshore completed the sale of its Hercules 170 jack-up drilling rig for $8.3 million.

Offshore Energy Today Staff, November 24, 2013