KUALA LUMPUR: Velesto Energy Bhd
has announced two contracts secured by its subsidiaries for the provision of a jack-up drilling rig and hydraulic workover unit.
In a filing with Bursa Malaysia, the group said its sub-subsidiary Velesto Drilling Sdn Bhd was awarded a contract by Jadestone Energy (Malaysia) Pte Ltd for the provision of a jack-up drilling rig for the latter's infill drilling programme at its operated East Belumut field.
The contract, which is valued at US$6.1mil, is effective from March 16, 2023.
"The contract is to drill four firm wells with an estimated commencement date in the third quarter of 2023 by Velesto NAGA 2," said the company.
Meanwhile, the group announced in a separate Bursa filing that another sub-subsidiary, Velesto Workover Sdn Bhd, has secured a project from ExxonMobil Exploration and Production Malaysia Inc (EMEPMI) for the provision of Gait 6 HWU and Services for the 2023/2024 workover and plug and abandonment programme
It said the value of this enabling contract with no guarantee of call-offs shall be based upon the agreed rates and work order, if any, issued by EMEPMI within the Contract term.
The commencement date of the project is expected in the third quarter of FY23 with a two-year contract duration.
