Velesto secures new drilling contract in Indonesia

KUALA LUMPUR: Velesto Energy Bhd has secured a new drilling contract from PC Ketapang II Ltd, PC North Madura II Ltd, and PETRONAS North Ketapang Sdn Bhd for its NAGA 8 jack-up rig in Indonesia.

In a statement, Velesto said the contract covers 12 firm well and three optional wells.

The contract, which is expected to support Velesto's rig utilisation and earnings visibility from 2025 to 2028, is set to commence in July 2025 over a firm period of four years.

A suspension period is scheduled from February to July 2026, during which Velesto retains the right to market NAGA 8 for other opportunities.

Operations are anticipated to resume in July 2026, with any changes to the suspension timeline to be communicated by the client.

"This contract award reflects our ongoing efforts to expand Velesto’s footprint in Southeast Asia. As the second contract secured in the region, it solidifies our commitment to this strategic growth," said Velesto president Megat Zariman Abdul Rahim.

"Our focus remains on building a healthy portfolio of contracts that strengthen the outlook and create long-term value for our stakeholders.