Velesto to provide jack-up rig for Mubadala’s Pegaga campaign

Malaysia’s Velesto Drilling has been awarded a contract by UAE-based Mubadala Petroleum for the provision of a jack-up drilling rig for Pegaga development drilling campaign offshore Malaysia. 

Naga 4 jack-up rig
Naga 4 jack-up rig; Source: Velesto

Velesto said on Wednesday that the contract was for seven firm wells and the contract value was estimated at $30 million.

The contract is expected to start in the second quarter of 2020. Velesto will use its Naga 4 jack-up to undertake the works.

According to information on Bassoe Offshore, the contract will start in May 2020 and end in May 2021. The dayrate estimate is $80,000.

The Naga 4 is a premium independent-leg cantilever jack-up drilling rig that has a drilling depth capability of 30,000 feet and has a rated operating water depth of 400 feet.

Mubadala sanctioned the development of the Pegaga gas field offshore Sarawak Malaysia in March 2018. The Pegaga gas field is located in the Central Luconia province, offshore Sarawak at about 108 meter water depth.

The development concept comprises of an Integrated Central Processing Platform (ICPP) consisting of an 8-legged jacket. The facility is designed for gas throughput of 550 million standard cubic feet of gas per day plus condensate.

The produced fluids will be sent through a new 38 inch subsea pipeline tying in to an existing offshore network and subsequently to the onshore Malaysia LNG plant in Bintulu. First gas is expected in 2021.

Offshore Energy Today Staff

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