Velesto Energy was awarded a RM 101 million (USD 25 million) contract from Sarawak Shell Bhd (SSB) and Sabah Shell Petroleum Company Ltd (SSPC) for the provision of jack up drilling rig services.
Velesto Energy was formerly known as UMW Oil & Gas Corp and a wholly owned subsidiary Velesto Drilling Sdn Bhd (VED). SSB/SSPC are subsidiaries of Royal Dutch Shell Plc.
Velesto said it would deploy the Naga 7 jack-up rig for the contract, with the start date to be between August 1, 2018, and September 30, 2018.
The Naga 7, designed by Gusto MSC, was built in China in 2015. It’s a three-legged jack-up capable of operating at water depths of up to 375 feet.
The contract is expected to contribute positively to the earnings and net assets of Velesto Energy group during the contract period for the financial period ending Dec 31, 2018.
This is the second rig deal announced by Velesto in July 2018. Earlier this month, Velesto said it had received a Letter of Award from Roc Oil for a contract on the provision of a jack-up drilling rig for its D35 Phase 2 Infill Drilling Program.