Velesto secures US$40mil drilling contract for 2025-2026 Malaysia campaign

KUALA LUMPUR: Velesto Energy Bhd (VEB) has been awarded a drilling contract by PTTEP HK Offshore Ltd and PTTEP Sarawak Oil Ltd, collectively referred to as PTTEP, for its 2025-2026 drilling campaign in Malaysia.

The contract value is estimated to be in the region of US$40 million (US$1=RM4.19), it said in a filing with Bursa Malaysia today. 

Under the contract, Velesto would assign NAGA 5, one of its premium jack-up rigs, to drill a firm 15 wells with operations scheduled to commence in June 2025. 

The contract was awarded to Velesto Drilling Sdn Bhd (VED), a wholly-owned subsidiary of Velesto Malaysian Ventures Sdn Bhd (VMV), which in turn is a wholly-owned subsidiary of VEB.

“Our focus remains on safe, reliable execution, driven by consistent delivery across campaigns. 

“With several rigs under long-term contracts, we remain committed to operational discipline and value-driven execution that creates sustainable returns for our shareholders,” said the group’s president, Megat Zariman Abdul Rahim.

This latest award follows Velesto’s recent announcements for NAGA 4 and NAGA 8 in May 2025, further strengthening the group’s fleet utilisation outlook. 

Velesto continues to benefit from rising regional demand for jack-up rigs and anticipates a more active second half of 2025, supported by a robust tender pipeline and stable client activity. 

NAGA 5 is a premium independent-leg cantilever jack-up drilling rig with a rated operating water depth of 400 feet and drilling depth capability of 30,000 feet. 

The services offered by VED are expected to positively impact the earnings and net assets of the VEB group during the contract period for the financial year ending on Dec 31, 2025. – Bernama