Velesto receives NOAs from PCSB for contracts worth US$265mil

KUALA LUMPUR: Velesto Energy Bhd’s (VEB) wholly-owned subsidiary, Velesto Drilling Sdn Bhd (VED) has received Notice of Assignments (NOAs) for its NAGA 2, NAGA 4 and NAGA 6 premium independent-leg cantilever jack-up rigs from Petronas Carigali Sdn Bhd (PCSB).

The NOAs are for two years until Feb 6, 2026, inclusive of the continuation of the current drilling campaign as per NOA dated Jan 11, 2024, March 7, 2023, and June 2, 2023, for a total contract value of US$73.04 million, US$94.88 million and US$97.08 million, respectively.

VEB also received a copy of the letter of contract extension from PCSB on Feb 2, 2024, which extends the term of the contract for two years from Feb 7, 2024-Feb 6, 2026, it said in a Bursa Malaysia filing today.

"VEB believes that the acceptance of the NOAs and extension letter in respect of the contract is in the best interest of the group.

"The contract's extension highlights strong utilisation of VEB’s rigs for 2024. It also indicates the potential for robust financial performance in the coming years, with an order book extending to 2025 and 2026,” it said. - Bernama