Velesto secures US$90mil drilling contract in Indonesia
KUALA LUMPUR: Velesto Energy Bhd has secured a new drilling contract valued at US$90 million (RM423 million) from three Indonesian oil and gas companies for the deployment of its Naga 8 jack-up rig in Indonesia.
The contract was awarded by PC Ketapang II Ltd , PC North Madura II Ltd and Petronas North Ketapang Sdn Bhd, the group said in a filing with Bursa Malaysia.
Scheduled to commence in July 2025, the project covers a firm period of four years covering 12 firm wells and three optional wells.
A suspension period is planned from February to July 2026, during which Velesto retains the right to market Naga 8 for other opportunities.
Operations are anticipated to resume in July 2026, with any changes to the suspension timeline to be communicated by the three firms.
The contract is expected to contribute positively towards the company's earnings and net assets from 2025 to 2028.
Velesto president Megat Zariman Abdul Rahim said in a statement that the contract reflects the company's ongoing efforts to expand footprint in Southeast Asia.
"As the second contract secured in the region, it solidifies our commitment to this strategic growth.
"Our focus remains on building a healthy portfolio of contracts that strengthen the outlook and create long-term value for our stakeholders," he added.
Velesto said the contract strengthens its position as a key player in Southeast Asia's oil and gas sector, in line with its long-term strategy to broaden its regional presence while maintaining high operational standards.
Naga 8 is a premium independent-leg cantilever jack-up drilling rig with drilling depth capability of 30,000 feet and has a rated operating water depth of 400 feet.
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