Petronas takes three Velesto jack-up rigs for drilling ops off Malaysia

Malaysian rig owner Velesto has secured work with an estimated combined contract value of $128 million for three jack-up drilling rigs for operations in Malaysia with the country’s oil and gas operator, Petronas Carigali.

NAGA 4 rig; Source: Velesto Energy

According to Velesto Energy’s Bursa Malaysia announcement, Velesto Drilling – a wholly-owned subsidiary of Velesto Malaysian Ventures, which in turn is a wholly-owned subsidiary of Velesto Energy – has received notice of assignments related to a contract award from Petronas Carigali for the provision of three jack-up rigs.

As per the terms of the award, the offshore drilling contractor will provide three jack-up rigs: NAGA 3, NAGA 4, and NAGA 6. All three rigs are premium independent-leg cantilever jack-ups with a drilling depth capability of 30,000 feet. Velesto’s NAGA 3 rig has a rated operating water depth of 350 feet, while NAGA 4 comes with a rated operating water depth of 400 feet and NAGA 6 has a rated operating water depth of 375 feet.

These three rigs are slated to begin their assignments with Petronas in the third quarter of 2023. While NAGA 3 is booked for eight firm wells, NAGA 4’s drilling agenda covers four firm wells plus two one-well options. On the other hand, NAGA 6 has been hired for ten firm wells plus one optional well.

The rig operator further underlines that the provision of these rig services is expected to contribute to the earnings and net assets of the group during the contract period for the financial periods ending 31 December 2023 and 2024, however, the rig owner did not mention specific day rates.

As a reminder, Velesto got a letter of award from the Malaysian giant in March 2022 for the provision of its suite of rigs. The duration of the contract was set for two years for the primary period, while the deal also entailed a one-year plus one-year extension option.

Regarding Velesto’s recent activities, the Malaysian player won a deal with Hess in November 2022 for drilling operations on a project located offshore Peninsular Malaysia.