Three Velesto jack-up rigs pick up more drilling work with Petronas

Petronas Carigali (PCSB), a wholly-owned subsidiary of Malaysian state-owned energy giant Petronas, has booked three jack-up rigs from Velesto, a compatriot rig owner, for further drilling operations off the coast of Malaysia.

Originally, 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. As a result, three rigs were slated to begin their assignments with Petronas in the third quarter of 2023. 

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 assignment (NOA) from Petronas Carigali for the provision of three jack-up rigs following a letter of contract extension from February 2, 2024.

Thanks to this, the offshore drilling contractor will provide three jack-up rigs: NAGA 2, NAGA 4, and NAGA 6 for two years, starting from February 7, 2024, until February 6, 2026, inclusive of the continuation of the current drilling campaign as per notice of assignment dated January 11, 2024, March 7, 2023, and June 2, 2023, for a total contract value of $73.04 million, $94.88 million, and $97.08 million, respectively.

All three rigs are premium independent-leg cantilever jack-ups with a drilling depth capability of 30,000 feet. Velesto’s NAGA 2 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. Petronas, together with its petroleum agreement contractors, recorded 19 exploration discoveries and two exploration-appraisal successes in Malaysia in 2023.

Velesto’s fleet of rigs was busy last year, enabling the rig owner to secure more work, including a long-term contract extension with an estimated value of $74 million for one of its jack-up drilling rigs with Kuala Lumpur-based Carigali Hess Operating Company, which is a joint venture between PCJDA Ltd and Hess Oil Company of Thailand Ltd.