Fresh four-year drilling gig for Velesto rig in Southeast Asia

Malaysia’s rig owner Velesto, a subsidiary of Velesto Energy, has landed a new multi-year drilling campaign for one of its jack-up rigs off the coast of Indonesia, boosting the firm’s expansion efforts in Southeast Asia in line with its long-term strategy of broadening its regional presence.

Only days after securing a 40-well drilling contract with Phu Quoc Petroleum Operating Company (PQPOC) in Vietnam for its NAGA 4 jack-up rig, Velesto got its hands on a new drilling deal with PC Ketapang II, PC North Madura II, and Petronas North Ketapang for its NAGA 8 jack-up rig in Indonesia.

Spanning a firm period of four years, the new contract, which is set to begin in July 2025, covers 12 firm wells and three optional wells, supporting the Malaysian giant’s rig utilization and earnings visibility from 2025 to 2028. With a drilling depth capability of 30,000 feet, NAGA 8 premium independent-leg cantilever jack-up drilling rig has a rated operating water depth of 400 feet.

The rig owner has disclosed a scheduled suspension period from February to July 2026, during which the firm retains the right to market this jack-up for other opportunities before operations resume in July 2026, unless the operator informs about changes in the suspension timeline.

Megat Zariman Abdul Rahim, President of Velesto, commented: “This contract award reflects our ongoing efforts to expand Velesto’s footprint in Southeast Asia. As the second contract secured in the region, it solidifies our commitment to this strategic growth.

“We thank the client for their trust and the opportunity to contribute meaningfully to this partnership. Our focus remains on building a healthy portfolio of contracts that strengthen the outlook and create long-term value for our stakeholders.”