Petronas taps Velesto for plug & abandonment work in Malaysia

Malaysia’s Velesto Energy has secured a deal for plug and abandonment (P&A) services with Petronas Carigali, a wholly-owned subsidiary of Petroliam Nasional Berhad (Petronas), on two offshore platforms in Malaysia.

Velesto Energy revealed on Thursday that Velesto Workover (VWO), a wholly-owned subsidiary of the firm’s Velesto Malaysian Ventures, had received a work order award (WOA) from Petronas Carigali for the provision of plug and abandonment integrated services for Tembungo-A (TMBG-A) and Tembungo-B (TMBG-B) platforms.

These offshore platforms are located on Sabah’s first developed offshore field in the Sabah Basin of East Malaysia, which was discovered in 1971 by Esso Exploration. The Tembungo field lies 75 km from Kota Kinabalu, in 277 feet of water. The unprocessed mixture of gas and crude from Tembungo-A is routed by a six-inch trunk line departing to Tembungo B.

According to Velesto, this deal has an estimated value of up to RM 60 million (around $13.4 million). The duration of this campaign is 21 months for Tembungo-A from May 2022 until January 2024. The deal also has an extension option of 12 months for Tembungo-B from January 2024 until December 2024.

In addition, this contract entails the provision of integrated project management and hydraulic workover unit services for the duration of the campaign.

When it comes to Velesto’s latest activities, it is worth noting that the firm upgraded two jack-up drilling rigs with offline capabilities recently.

This was done to reduce days spent on a well along with drilling costs and curb emissions.