Leiv Eiriksson Rig Doesn’t Meet AoC Requirements, PSA Norway Says

The Petroleum Safety Authority Norway (PSA) today announced it has established that Ocean Rig AS has failed to comply with the preconditions for the Acknowledgement of Compliance (AoC) for Leiv Eiriksson while the semi-submersible rig, operated outside the Norwegian shelf.

The PSA has learned of plans for the mobile facility Leiv Eriksson to participate in activities on the Norwegian shelf in the first quarter of 2013. The facility received an AoC in July 2008, but has been active abroad for the past three years.

In connection with the start of a planned audit activity, Ocean Rig provided information which indicated that the company has not had the capacity to follow up the obligations linked to the Acknowledgement of Compliance, the PSA announced today. Among other things, it emerged that maintenance of the facility has not received the necessary priority, that the company’s system for handling non-conformities has not been operative, and that the overview of the non-conformity situation is deficient, the Norwegian watchdog added.

The regulations require mobile facilities to have an AoC to participate in petroleum activity on the Norwegian shelf. If a facility operates outside the Norwegian shelf, the owner can decide whether or not to maintain the AoC. If the owner chooses to maintain the AoC, then the owner is obliged to ensure compliance with the preconditions stipulated for the AoC at all times.

“It is now up to Ocean Rig to ensure that the Leiv Eiriksson undergoes the necessary upgrades as well as any other measures so that compliance with the AoC preconditions is restored before the facility can be included in petroleum activities on the Norwegian shelf,” the PSA said.

The operating company responsible for the activity in which the facility will take part is also ultimately responsible for ensuring that Ocean Rig, as contractor, complies with the regulations.

In a letter to the PSA, Ocean Rig has disagreed that the condition of the rig indicates non-compliance with the preconditions for the AoC. The rig is scheduled to visit a workshop and, through further audit activity during this period, the PSA will determine whether the regulatory requirements have been satisfied.

In this context, a meeting has been scheduled between the PSA and Ocean Rig on Friday, 16 November 2012. “We expect a constructive dialogue with Ocean Rig concerning this matter,” the PSA concluded.

The rig is presently located in the Falkland Islands’ waters, where it is being used by FOGL for drilling at Scotia prospect.

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November 14, 2012