The aircraft was being ferried to the Philippines. An intermediate stop was made at Palau, where it remained idle for about a month. The pilot reported that prior to takeoff from Palau he had refuelled the aircraft from drum stock and that subsequent water drain checks were clear. Pretakeoff checks were normal but during takeoff, as the aircraft was rotated at about 90 kts, the right engine lost power. The pilot said he feathered the propeller, and retracted the flaps and landing gear, but the aircraft failed to achieve single engine climb speed. Because the left engine oil temperature was at the red line the pilot elected to carry out a wheels up forced landing onto a sandbar on an adjacent island. Photographs of the damaged aircraft indicated the right propeller blades were not in the feathered position. The propeller did not appear to have been rotating at impact. The reason for the loss of power was not determined.