KUALA LUMPUR (Aug 26): Oil and gas services firm Velesto Energy Bhd (KL:VELESTO) said it has completed the periodic inspection of its Naga 2 rig under what is called its Mandatory Five Yearly Special Periodical Survey (SPS) programme and that the rig will be heading to Sarawak soon.

Naga 2 is currently dry-docked in Singapore, where it has been since June 24. On reaching Sarawak, it will start a development drilling campaign, Velesto said in a statement on Monday.

Velesto also said it had received a letter of award for its Naga 3 rig from Thang Long Joint Operating Company, and that the rig is expected to be working in Vietnam during the September-November months. It did not disclose the value of the new job, which the rig will be taking on before its SPS in the first quarter of next year.

Velesto president Megat Zariman Abdul Rahim said the group is pleased that Naga 2 completed its SPS on time to allow the rig to continue to support its client's work plans for its remaining contract period.

The company had announced in March this year that it had secured a two-year contract extension from February 2024 to February 2026 for the provision of three jack-up rigs — Naga 2, Naga 4 and Naga 6 — to Petronas Carigali Sdn Bhd, for a total contract value of US$265 million (RM1.26 billion).

Individually, the contract value is worth US$73.04 million for Naga 2, US$94.88 million for Naga 4 and US$97.08 million for Naga 6.

“We are also delighted that Naga 3 has been given the opportunity to return to work in Vietnam, allowing us to maximise our utilisation before Naga 3’s SPS in 1Q2025.

“We are determined to deliver service excellence in terms of operational and HSE (health, safety and environmental) performance to support our clients. The Southeast Asia jack-up market remains robust and we continue to bid actively in Southeast markets," Megat Zariman added.

Velesto’s share price closed half a sen higher at 21.5 sen, valuing the company at RM1.77 billion.