VELESTO Energy Bhd’s unit, Velesto Drilling Sdn Bhd, has secured a contract extension with Carigali Hess Operating Company Sdn Bhd for one year and six months.

The contract, valued at an estimated US$74 million, involves providing a 10K jack-up drilling rig named NAGA 8.

The extension will be effective from April 19, 2024, to Oct 18, 2025.

Carigali Hess initially awarded the contract in 2019, and it was valued at US$131 million.

The extension is expected to positively contribute to Velesto Energy’s earnings and net assets.

Carigali Hess is an oil and gas joint venture involved in gas production in the Malaysian-Thailand Joint Authority-administered joint development area. – TMR