KUALA LUMPUR – Velesto Energy Bhd recently revealed that its subsidiaries have successfully secured two high-profile contracts. These contracts center around the provision of a jack-up drilling rig and a hydraulic workover unit.
Velesto Drilling Sdn Bhd, a sub-subsidiary of the group, has bagged a contract from Jadestone Energy (Malaysia) Pte Ltd. This contract emphasizes providing a jack-up drilling rig to support Jadestone Energy’s infill drilling efforts at the East Belumut field they operate.
Also Read: MIA’s Invitation-Only Impact Circle Stellar CxO 2023 Malaysia Recognition Will Be Announced This September 1, 2023
This significant agreement comes with a value tag of US$6.1 million. It will come into effect from March 16, 2023. Velesto Energy Bhd highlighted that under this contract, the objective is to drill four firm wells. The drilling, led by Velesto NAGA 2, will likely kick off in the third quarter of 2023.
In another stride of success, Velesto Workover Sdn Bhd, another sub-subsidiary, has clinched a project from ExxonMobil Exploration and Production Malaysia Inc (EMEPMI). This venture focuses on providing Gait 6 HWU and Services for the 2023/2024 workover, alongside the plug and abandonment program.
However, this contract operates on a flexible format. The overall value hinges on the agreed rates and any work orders ExxonMobil issues during the contract term. This unique contract setup means there is no guaranteed call-off value.
As for the project’s timeline, it will commence in the third quarter of FY23. Furthermore, this contract spans a duration of two years.
Velesto Energy Bhd’s latest acquisitions in terms of contracts position it firmly in the drilling and hydraulic workover sectors. With these two prominent deals in its portfolio, the company seems poised for a steady growth trajectory.
Based on insights from The Star.