Concerns over more jack-up rigs entering South-East Asia

PETALING JAYA: Despite an earnings-estimate upgrade by Maybank Investment Bank (Maybank IB) Research, Velesto Energy Bhd saw its target earnings multiple reduced over concerns about new jack-up rigs entering South-East Asia.

Citing Upstream, an online news portal which focuses on the international energy industry, Maybank IB Research said Saudi Aramco has suspended about 20 jack-up rig contracts for about 12 months, following the country’s decision to pause further expansion of its oil production capacity beyond 12 million barrels per day (bpd).