Velesto Energy (VEB) has announced that Velesto Drilling (VED) (formerly known as UMW Offshore Drilling), a wholly-owned subsidiary of VEB, has been awarded four contracts by PETRONAS Carigali (PCSB), for the provision of jack up drilling rigs services. All the awarded contracts will commence from April 2019 onwards for a firm duration of one (1) year, with an option of an additional one (1) plus one (1) year extension for each of the contracts.
Commenting on the award, Rohaizad Darus, President of Velesto Energy Berhad said, 'We must thank PETRONAS for their continued support and trust in local service providers in addressing increased activities in the exploration and production sector. I believe the drilling segment of the oil and gas industry is seeing brighter days ahead as evidenced by the increased in global activities to address industry’s declining reserves and production.'
The contracts which carry a cumulative value of over US$104.7 million for the first one year firm period will see four (4) premium jack-up drilling rigs from Velesto Energy Berhad’s fleet; NAGA 2, NAGA 3, NAGA 5 and NAGA 6 taking part in PCSB’s drilling campaign located in Malaysian waters.
'Now that the baseline revenue stream is secured, we can give more attention to further improving our bottom line by continuous cost control and increasing operational and financial efficiencies. It will also give us the opportunity to develop the global market for the rest of the drilling rigs,' added Rohaizad.