Velesto bags RM60 mil contract from Petronas Carigali

KUALA LUMPUR (Aug 25): Offshore drilling services provider Velesto Energy Bhd has received a work order for up to RM60 million from Petronas Carigali Sdn Bhd (PCSB) to provide plug and abandonment integrated services for its Tembungo-A and Tembungo-B oilfields offshore Sabah.

In a bourse filing, Velesto said its wholly owned subsidiary Velesto Workover Sdn Bhd (VWO) was awarded the job from PCSB.

The work duration for Tembungo-A is 21 months, starting tentatively from May 2022, with an option to extend a further 12 months for Tembungo-B, provisionally from January 2024 to December 2024.

Velesto said the award is expected to contribute positively towards the group's earnings and net assets in the financial years the works are performed by VWO.

Shares in Velesto closed 0.5 sen or 6.25% higher at 8.5 sen on Thursday (Aug 25), bringing it a market capitalisation of RM698 million. The stock has lost 43% of its value compared with one year ago, when it was traded at 15 sen.