KUALA LUMPUR (April 7): Velesto Energy Bhd (VEB) said its unit Velesto Drilling Sdn Bhd (VED) has bagged a contract worth US$17.68 million for the provision of jack-up drilling rig services.
In a filing with Bursa Malaysia, Velesto said VED has received a letter of award from Sarawak Shell Bhd (SSB) and Sabah Shell Petroleum Company Limited (SSPC). Both SSB and SSPC operate as a subsidiary of Royal Dutch Shell PLC.
It said the contract is for VEB’s jack-up rig, namely NAGA 4 — 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.
The contract is to drill seven firm wells with the expected commencement date to be between August 15 to Oct 15 2021, according to the group.
“The provision of the above mentioned services is expected to contribute positively to the earnings and net assets of VEB Group during the contract period for the financial year ending Dec 31 2021,” the group said.
At the closing bell, Velesto was one sen or 2.86% lower at 17 sen, with a market value of RM1.4 billion. It saw some 29.47 million shares done.
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