Velesto bags RM115m contract extension for North Malay Basin

KUALA LUMPUR, Feb 12 — Velesto Energy Bhd (VEB) announced that its unit has received a contract extension from Hess Exploration and Production Malaysia B.V. (Hess) for the provision of a high pressure high temperature jack-up drilling rig and services for the North Malay Basin, Malaysia for US$38 million (about RM155 million).

In its filing to Bursa Malaysia today, VEB said the contract extension was for the provision of drilling rig services for Hess’ Drilling Programme, whereby VEB Group would assign one of its rigs, NAGA 8, for this contract.

The contract is for a duration of 18 months with an option for further extension, and the value is estimated at US$38 million, commencing in the second quarter of 2018.

NAGA 8 is a premium independent-leg cantilever jack-up rig that has a drilling depth capability of 30,000 feet and has a rated operating water depth of 400 feet.

VEB said the provision of these services was expected to contribute positively to the earnings and net assets of VEB Group during the contract period for the financial period ending Dec 31,  2018. — Bernama