Velesto unit secures asset-light rig contract


PETALING JAYA: Velesto Energy Bhd has secured its first asset-light rig contract from Hibiscus Oil & Gas Malaysia Ltd for an offshore drilling campaign in Malaysia.

Velesto said in a statement the contract was secured by its unit, Velesto Drilling Sdn Bhd, and involves the use of a third-party jack-up rig under a charter arrangement.

The contract covers drilling services for eight plug and abandonment (P&A) wells and one exploration well, with an option for up to seven additional wells.

Operations are scheduled to begin this month at the PM3 Commercial Arrangement Area (PM3 CAA) offshore Malaysia, with optional wells potentially extending operations into North Sabah waters.

Velesto president Megat Zariman Abdul Rahim said the award reflects the group’s ability to support clients through different contracting models while maintaining operational discipline.

“This gives us greater flexibility in responding to market opportunities and supporting our clients’ needs,” he said.

The contract value was not disclosed.

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Velesto Energy , drilling , rig

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