Velesto’s indirect wholly owned unit gets PTTEP job for RM60.6m

KUALA LUMPUR (July 11): Velesto Energy Bhd's indirect wholly owned subsidiary Velesto Drilling Sdn Bhd has secured a contract for the provision of drilling rig services for PTTEP Sabah Oil Ltd and PTTEP Sarawak Oil Ltd worth some RM60.55 million.

In a filing with Bursa Malaysia on Tuesday (July 11), the group stated that Velesto Drilling, a subsidiary of Velesto Malaysian Ventures Sdn Bhd, in turn wholly owned by Velesto, had received a letter of award from PTTEP for the provision of one 10K jack-up drilling rig known as "Jack-Up Rig #3" for its 2022-2023 exploration drilling programme.

The contract will involve the assignment of the group's Naga 3 for PTTEP's drilling programme, requiring it to drill two firm wells starting from February 2023.

Naga 3 is a premium independent-leg cantilever jack-up drilling rig with drilling depth capability of 30,000ft and a rated operating water depth of 350ft.

Velesto shares closed unchanged at 23.5 sen on Tuesday, with 6.58 million shares changing hands, giving it a market capitalisation of RM1.93 billion.