Velesto bags US$128m jack-up rig job from Petronas Carigali

KUALA LUMPUR (May 9): Velesto Energy Bhd on Tuesday (May 9) announced that its indirect wholly-owned subsidiary Velesto Drilling Sdn Bhd has received three Notice of Assignments related to the contract for the Provision of Jack-Up Drilling Rigs for Petronas Carigali Sdn Bhd (PCSB)

The contract, first announced in March 11, 2022, is for the provisio of services of three jack-up rigs, namely "NAGA 3", "NAGA 4" and "NAGA 6", with an estimated combined contract value of US$128 million (RM569.48 million).

The three jack-up rigs — NAGA 3, NAGA 4, and NAGA 6 — have a drilling depth capability of 30,000 feet and a rated operating water depth of 350 feet to 400 feet, according to the company's Tuesday filing.

According to Velesto, the contract commences from Quarter 3, 2022 until the completion of each respective campaign.

The provision of the drilling services is expected to contribute to the earnings and net assets of Velesto for the financial periods ending Dec 31, 2023 (FY2023) and FY2024.

On Feb 2, Velesto Malaysian Ventures 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).

Velsto posted a net loss of RM26 million for its fourth quarter ended Dec 31, 2022 (4QFY2022) against a net profit of RM5.43 million a year ago, as its bottom line was hit by higher operating expenses, finance costs, and taxation.

Velesto closed unchanged at 23 sen apiece, valuing the company at RM1.89 billion.