The incident took place at around 9:00pm EST, and a few hours later, the resulting blaze has continued to burn.
The rig is on fire in Kenner, Louisiana in Jefferson Parish.
Kenner Police Department spokesman Sgt. Brian McGregor said numerous injuries were serious. He tweeted citing officials that the cleanup of the lake could be facilitated by the shallow nature of the water, as opposed to the oil spill in the Gulf of Mexico that occurred in 2010.
The blaze on the oil rig on Sunday night.
Officials with St. Charles Parish, located northwest of New Orleans, tweeted that the rig was "currently on fire" late Sunday. However, NOLA.com adds that Jefferson Parish's drinking water (which comes from the Mississippi River) shouldn't be affected, although oil could still be leaking into the lake.
Flames could be seen on the lake Sunday night from the area around the Kenner boat launch, and the air smelled like burning rubber.
'Several people have been rescued from the rig.
Brian McGregor said rescue boats were mobilized and that officials with the Jefferson Parish Sheriff's Office were assisting, the Times-Picayune reported.
The St. Charles Parish's Facebook page noted that authorities with the Emergency Operations Center are "aware that an oil rig is now on fire in Lake Pontchartrain and that it caused the loud sound earlier". The Treasure Chest Casino will remain open and operational while those efforts are underway.
Authorities said that they were working to confirm exactly who was on the platform at the time of the explosion.
Witnesses also reported on social media hearing a loud noise on Sunday evening.