Velesto Energy Bhd’s subsidiary, Velesto Drilling Sdn Bhd (VED), has been awarded a contract by Vestigo Petroleum Sdn Bhd (Vestigo) for the provision of the NAGA 2 jack-up drilling rig.

The contract, valued at approximately US$10.9 million, was approved today, it told the stock exchange.

Under the contract, VEB’s NAGA 2 rig will be utilised to drill five firm wells, with the expected commencement date in the fourth quarter of 2023.

NAGA 2 is a state-of-the-art jack-up rig with impressive drilling depth capabilities of 30,000 feet and a rated operating water depth of 350 feet.

VED specialises in offshore drilling operations and engineering services for oil and gas exploration, development, and production in Malaysia and abroad. 

Vestigo, meanwhile, is a wholly-owned subsidiary of Petronas Carigali Sdn Bhd. Its focus is on developing small and stranded oil and gas reservoirs using innovative and cost-effective approaches to maximise economic value.

The provision of this service is anticipated to have a positive impact on VEB Group’s earnings and net assets for the financial period ending on December 31, 2023. 

Velesto shares were unchanged today at 23 sen, while its market capitalisation stood at RM1.9 billion. –TMR