Foreign markets option for Velesto

PETALING JAYA: As demand for jack-up drilling rigs locally expected to remain flattish in the near-term, Velesto Energy Bhd may have to look outside Malaysia to replenish its pipeline of jobs, says Kenanga Research.

“According to Petroliam Nasional Bhd (PETRONAS) latest activity outlook, the demand for jack-up drilling rigs locally is expected to remain flattish for the next two years. This does not augur well for Velesto in the local market. Hence, we believe it is crucial for Velesto to raise its game outside of Malaysia to reduce its dependence on local PETRONAS jobs,” added the research firm.