Reports from an oil rig worker who saw a fire in the sky on the night Malaysia Airlines flight 370 disappeared are being taken seriously, police sources have confirmed.

But New Zealander Mike McKay, 55, has lost his job in the ‘‘circus’’ that developed after his report to authorities was leaked.

Mr McKay had been working on the Songa Mercur oil rig in the South China Sea when he saw an ‘‘orange light’’ on an especially clear night.

The object was still in one piece and close to where MH370 first dropped off radar between Malaysia and Vietnam on March 8 with 239 people on board.