Scorpion Offshore Limited, working as a contractor for Gazprom stated that the construction of a well at the Urumaco-1 offshore block was postponed. 

In accordance with Offshore Vigilant’s contract with Gazprom in Venezuela, Gazprom informed Scorpion that the 550 hours the company spent working on the well in May 2009 have been lost as a consequence of a “fishing job.” The payment of USD 3.8 million for the work rendered is now in dispute.

The parties have engaged an independent arbiter to issue an opinion to resolve the controversy. Scorpio has not posted the disputed USD 3.8 million as revenue in the second quarter, even though it disagrees with the stance that Gazprom took.

Sources inside Gazprom said that an accident took place at the Urumaco-1 in May of 2009, delaying the drilling process. Officially Gazprom has not confirmed nor denied the news of the accident, stating that the company was continuing the drilling operation at Urumaco-1.

It is estimated that Urumaco-1 has around 29.6 billion cubic meters of gas. Urumaco-1 includes both R3 and Coro-Coro prospects. Gazprom paid almost USD 15.2 million to explore this section in the eastern part of the Gulf of Venezuela.

The drilling commenced in November of 2008 after an official ceremony with members of the Russian and the Venezuelan governments.