Velesto bags jack-up drilling rig services worth RM59m from ROC Sarawak

KUALA LUMPUR (Feb 2): Velesto Energy Bhd announced that its wholly owned subsidiary Velesto Malaysian Ventures Sdn Bhd had received a letter of award from ROC Oil (Sarawak) Sdn Bhd for the provision of jack-up drilling rig services estimated at US$14 million (RM59.29 million).

According to a bourse filing on Wednesday (Feb 1), Velesto Malaysian Ventures' wholly owned subsidiary Velesto Drilling Sdn Bhd is estimated to be drilling three firm wells from Jan 25 to Feb 25 this year.

“The group will assign its Naga 2 for this contract. Naga 2 is a premium independent-leg cantilever jack-up rig, with drilling depth capability of 30,000 ft and a rated operating water depth of 350 ft,” according to the filing.

The group expects the contract to contribute to its earnings and net assets during the contract period for the financial year ending Dec 31, 2023.

“None of the directors and/or the substantial shareholders of Velesto Energy and/or persons connected with the directors and/or substantial shareholders have any interest, direct or indirect in the above contract,” added the group.

At the time of writing on Thursday, Velesto Energy’s share price had improved by three sen or 13.04% to 26 sen. The group's market capitalisation stood at RM2.18 billion.