Exclusive interview: Velesto going after three Ds – Digitalization, decarbonization, and diversification for enhanced drilling and oil & gas era

With the world caught in a vicious circle of geopolitical tensions, high-stakes tariff games, emerging trade wars, climate change woes, and the need to tackle the energy security, sustainability, and affordability trilemma, technological advancement, supportive policy regulations, and integration of greener and cleaner power innovations are a bedrock of an equitable energy transition age for Malaysia’s Velesto Energy, owner of six premium jack-up rigs and two hydraulic work-over units. The firm has set its cap on growth and expansion by dipping its toes into robotics and eyeing potential deepwater plays through lease agreements.

The global markets and energy landscape continue to evolve as attempts are made to come to grips with rising challenges, including the most recent ones stemming from the tariff quest Donald Trump, U.S. President, is keen on putting into play for imports from Canada, Mexico, and China, albeit he did agree on a one-month freeze for the ones aimed at Mexico.

Trump also disclosed plans to hit the European Union (EU) with a tariff hike. These and similar moves are likely to spark trade wars, potentially resulting in a cost rise for certain goods and services in many spheres and sectors, including the energy arena.

While all regions are feeling the need to diversify their energy sources to ensure energy security and curb their greenhouse gas (GHG) emissions footprint, Asia is pinpointed as the region where significant energy growth is expected to be on the cards. The Asia-Pacific region is witnessing an oil and gas boost in Malaysia and an expansion in renewable energy projects in Taiwan and Vietnam.

Wood Mackenzie‘s ‘Energy Transition Outlook’ report indicates under its base case scenario that renewable energy sources will account for 70% of the energy mix by 2050. With this in mind, the International Energy Agency‘s ‘Southeast Asia Energy Outlook 2024’ underlines that eight out of ten Southeast Asia countries have set net zero emissions targets. While Brunei Darussalam, Cambodia, Lao PDR, Malaysia, Singapore, and Vietnam aim to reach net zero by 2050; Indonesia targets 2060; and Thailand aims for 2065.

Despite the growth in the renewables arena, the IEA’s long-term outlook still predicts oil and gas will account for around 40% of the energy mix by 2050, with caution needed since demand trends show a flattening from 2030 onward as the energy transition progresses. Even though the EU oil and gas demand peaked nearly two decades ago, demand from emerging markets is yet to reach its peak and may do so in the coming years.

Based on the data from the Energy Council and S&P Global, the Southeast Asia oil and gas industry is projected to experience a compound annual growth rate (CAGR) of over 4% through 2030, driven by increased industrialization and rising demand for natural gas as part of the energy transition. In a similar fashion, the Asia-Pacific region is expected to see a CAGR exceeding 6% during the same period, influenced by factors such as economic growth, industrialization, and the shift towards cleaner energy sources.

Therefore, these trends are interpreted to highlight the region’s significant role in the global energy landscape and underscore the importance of strategic planning to balance economic development with environmental sustainability.

Given the anticipated energy market growth in Asia and the increase in oil and gas activity in Malaysia, Offshore Energy decided to get Velesto’s take on the ongoing and future energy dynamics in the Asian market, with a particular focus on Malaysia. During our interview with Megat Zariman Abdul Rahim, President of Velesto Energy, who holds a Bachelor of Science in Electrical Engineering from Worcester Polytechnic Institute in the United States, three key pillars were spotlighted as the Malaysian firm’s focus areas.

These encompass digitalization as a way for advanced technology and automation to drive efficiency and safety in operations, sustainability as part of the company’s efforts toward decarbonizing operations and upcoming drilling projects, and the shifting energy landscape in Asia and how Velesto is positioning itself to seize opportunities in the region. The ways to enable low-carbon and greener rigs were also discussed. Rahim is adamant that the firm’s approach takes into account key factors in navigating the energy transition by fortifying the Malaysian player’s market position and enhancing sustainability and operational efficiency.

Prior to joining Velesto, he worked for ExxonMobil’s Esso Production Malaysia, SLB, and Bumi Armada. The Malaysian firm’s President is a member of multiple associations, including the Board of Engineers and Institute of Engineers Malaysia, alongside the Malaysia Board of Technologists and Society of Petroleum Engineers. According to Rahim, gas will remain in high demand in the foreseeable future, as it is expected to be the energy transition’s crown jewel.

Velesto’s President has outlined the firm’s zest for advanced technology, confirming plans to launch a robotics arm in the first quarter of 2025 to pursue further automation efficiency. As part and parcel of its safety and sustainability agenda, the company equipped one of its jack-up rigs with red zone management. Since the Malaysian giant portrays carbon capture, utilization, and storage (CCUS) as a primary decarbonization lever to enable low-emission oil and gas production, the firm is determined to pursue this solution.

While painting a picture of the possibility of enabling zero-emission rigs, Rahim underlined the importance of taking advantage of greener alternatives to diesel, such as green methanol, to power offshore rigs and marrying carbon capture technologies and renewables to put in place decarbonization tools for a net zero journey that will enable an equitable energy transition. Such an approach is likely to allow Asia to strike a balance in its energy mix by 2050 between fossil fuels and renewables, which require a step up in the technological advancement game to bolster affordability.

Moreover, Velesto is interested in pursuing automated operations in the offshore drilling arena. In the firm’s view, tackling market volatility requires adaptability and corresponding regulations that will unleash further innovation and growth. The company believes that energy storage and offshore renewable energy will play an important part in the carbon reduction moves. The Malaysian player has set its cap on a potential expansion into deepwater operations to be enabled through lease agreements to fortify its rig fleet.

Digitalization inroads boost efficiency

• Digitalization and AI are becoming increasingly popular in offshore energy operations. How has Velesto benefitted from deploying advanced technologies and what are some areas in which the company aims to enhance its performance with such solutions in the future?

Megat Zariman Abdul Rahim: Velesto’s adoption of advanced digitalization and AI technologies has redefined our offshore operations, delivering remarkable results in operational excellence, safety, and service quality.

– Operational Excellence Through Technology
Digitalization has been a key enabler in achieving 99% uptime and zero loss time injury (LTI) in 2024, reflecting our commitment to operational excellence. The implementation of advanced technologies like autonomous drilling and predictive maintenance on some of our rigs allow us to optimize operations, reduce downtime, and exceed client expectations. This is validated by recognitions and positive feedback from our clients, indicating that we have exceeded their expectations thus solidifying our position as a premium service provider for our clients.

– Increased Efficiency and Performance
Our deployment of autonomous drilling technology, the Velesto Drilling Automation System, on NAGA 4 has enhanced operational performance. As we look forward, the planned introduction of a robotic arm in Q1 2025 will further streamline key processes and elevate our efficiency to the next level.

– Minimizing Unscheduled Downtime
With the integration of AssetCare on NAGA 4, we have leveraged real-time monitoring and predictive maintenance capabilities, ensuring operational reliability while reducing unscheduled downtime.

– Enhanced Safety and Environmental Stewardship
Safety is integral to everything we do. The implementation of Red Zone Management on NAGA 4 has minimized human exposure to high-risk areas, contributing to a safer work environment. These efforts align with our remarkable HSE achievements in 2024, including maintaining a zero lost time incident (LTI) record and zero major spills throughout the year.

Additionally, through AssetCare, which leverages process analytics, we can understand our operational emission profile in real time, enabling more targeted interventions to reduce emissions. Through these advancements, we continue to deliver exceptional service quality to our customers while setting new benchmarks in efficiency, safety, and sustainability.

Sustainability pursuits to solve net zero puzzle

• Which technological advancements in the energy sector do you consider as core business opportunities to unlock further growth?

Megat Zariman Abdul Rahim: We see carbon capture, utilization, and storage as a key opportunity to reduce emissions and support the sustainable future of oil and gas production.

With our core expertise in drilling, we are well-positioned to contribute to CCUS initiatives by enabling safe and efficient drilling execution for CO₂ injection wells and long-term storage solutions. This focus aligns with our commitment to innovation, sustainability, and advancing the energy transition.

• What do you perceive to be the height of innovation in the offshore drilling arena so far and where do you see more room for improvement in the local and global rig markets? What are the biggest challenges the market needs to tackle?

Megat Zariman Abdul Rahim: The advancement of automated operations represents a significant opportunity in offshore drilling, driving greater efficiency, consistency, and reducing uncertainty. These innovations have optimized operations by reducing human intervention, enhancing safety, and allowing for more reliable and cost-effective drilling process.

This adoption has been a key innovation for Velesto, enhancing efficiency, consistency, and safety by reducing human intervention and operational uncertainty. While progress has been made, automation remains an area for growth. Many operations remain manually driven, and further automation can boost efficiency, minimize errors, and ensure more consistent performance, strengthening our competitive edge.

One of the biggest challenges – which we have seen time and time again – is the cyclical nature of our industry. Business activities can increase or fall just as abruptly, irrespective of perceived fundamentals. In this vein, businesses need to be adaptable and sustainable to maintain and build on our core capabilities, despite the volatility.  

• In some regions of the world, the emphasis is more on energy security than the transition to low-carbon and zero-emission sources of supply. How is Velesto tackling this energy dilemma?

Megat Zariman Abdul Rahim: Velesto, as an integral part of the energy value chain, remains committed in supporting our clients’ aspirations and goals in delivering energy security while contributing to a sustainable energy future.

Recognizing that oil and gas will continue to be essential in the global energy mix for the foreseeable future, we are dedicated to ensuring a responsible and fair energy transition toward cleaner energy sources. Our commitment extends to responsible service delivery, minimizing environmental impact and reducing emissions, backed by continuous operational efficiency and technological innovations.

To this, we track our emission performance against the baseline set in 2021, ensuring our operations meet established reduction targets, underscoring our role in minimizing environmental harm. We also actively collaborate with our clients and industry peers to identify and implement more sustainable practices in the process of hydrocarbon extraction.

• What drives Velesto’s sustainability efforts? If you had to use only three words to describe these endeavors, which ones would you pick?

Megat Zariman Abdul Rahim: Our sustainability efforts are driven by a commitment to creating lasting value for both our business and stakeholders. We understand the importance of navigating the complexities and volatility of the current business environment while prioritizing responsibility in protecting the environment and safeguarding people.

Our approach to sustainability is anchored in three key principles: Value Creation, Resilience, and Stewardship. These principles guide our actions, ensuring that we not only contribute to the growth of our business but also foster long-term positive impacts for the communities and environments we work in.

• Could you shed more light on the company’s main short-term and long-term sustainability plans, taking into account Malaysia’s net-zero by 2050 target? Is there a particular decarbonization tool that you believe will be the key to reaching this goal?

Megat Zariman Abdul Rahim: Velesto is fully aligned with the national sustainability aspirations, as well as the strategic goals of our clients and investors. Our commitment to sustainability is reflected in both our medium- and long-term decarbonization goals.We have set an ambitious target in 2022 to reduce emissions intensity by 10% per operating day and a 30% reduction in revenue emissions intensity by 2030. We are already making significant progress towards these targets.

Looking ahead, Velesto has committed to a long-term goal of achieving net zero emissions by 2050, a commitment introduced in 2024. To reach this milestone, we have been actively assessing feasible pathways and solutions in 2024, with plans to share more updates on our decarbonization strategy in the near future.

A key aspect of our decarbonization journey is technological advancement, particularly in the adoption of greener fuel alternatives and their associated power mechanisms. As diesel fuel consumption on our rigs contributes to 99% of both direct and indirect emissions from our operations, we believe that transitioning to cleaner fuels will be crucial in achieving our net zero goal.

We remain dedicated to exploring innovative solutions, continuously refining our sustainability approach, and ensuring we meet our decarbonization targets while supporting the energy transition.

• Given the forecasted shift in the oil and gas market toward Asia, how can Malaysia, and Velesto in particular, take advantage of a greater focus on the region to secure further economic and environmental growth and inroads?

Megat Zariman Abdul Rahim: The expected growth in market outlook for oil and gas in the Asia region is primarily driven by increased industrialization and the rising demand for gas as a transition energy source in support of decarbonization efforts. This trend is further bolstered by recent upstream discoveries, particularly in Malaysia and Indonesia.

These developments present significant opportunities for Malaysia to position itself as the energy hub for the region, attracting investment and facilitating long-term economic growth. With its vast resources, Malaysia is well-poised to unlock its CCUS and cleaner energy potential, such as green hydrogen, especially when supported by the right policies like the National Energy Transition Roadmap (NETR).

This aligns with Malaysia’s vision of meeting the energy demands of today while establishing itself as the hub for the energy of tomorrow. Velesto is well-positioned to be part of this growth, continuously advancing our technological edge through innovative partnerships (e.g., autonomous drilling technology, emission monitoring solutions), and expanding our services across the region to support the evolving energy landscape.

This content is available after accepting the cookies.

Change cookie-settings View on Offshore-energy.

Furthermore, Velesto is committed to maintaining high sustainability practices, as evidenced by our strong ESG performance, reflected in inclusion in the Bursa Malaysia ESG Index (FTSE4Good). This dedication ensures that Velesto contributes not only to economic growth but also to the environmental growth of the region.

• In which direction is Asia’s energy landscape heading, and which sources of energy supply will dominate up to 2050 and beyond?

Megat Zariman Abdul Rahim: In the immediate future, energy demand from traditional sources such as coal and oil & gas will continue to grow, driven by population growth and rapid development in the region. While these traditional sources remain crucial, the global shift towards sustainability and net zero ambitions is gaining momentum. As more countries integrate net zero targets into their policies, the demand for cleaner energy supplies will rise significantly from 2030 onwards.

By 2050, Asia is expected to witness a balanced energy mix, combining both traditional energy sources and cleaner alternatives. This dual approach will ensure energy security while progressively reducing environmental impacts. Rapid technological advancements will play a critical role in improving renewable energy (RE) affordability, which will be key in tipping the balance towards a more sustainable energy future.

Velesto is committed to being part of this transition, enhancing technological solutions that support sustainable operation to continue to meet the energy demands of today.

• Which avenues is Velesto pursuing to future-proof itself and seize opportunities across Asia, particularly within the Asia-Pacific region?

Megat Zariman Abdul Rahim: Velesto is strategically repositioning itself as a premium rig operator, with a strong focus on operating younger, more technically competitive rigs. This approach better aligns with market demand and enables us to deliver greater operating efficiencies, ensuring we remain competitive in an evolving industry landscape.

Additionally, we are embracing an asset-light strategy, which offers us greater flexibility to maintain and expand our operating capacity. This allows us to swiftly respond to changing market conditions, while also positioning us to seize new opportunities across the Asia-Pacific region.

By continuously advancing our capabilities and operational efficiency, Velesto is well-positioned to meet the demands of today and capture future growth in the dynamic energy sector.

• Which energy transition drivers do you believe will play a key role in the offshore rig market’s transformation?

Megat Zariman Abdul Rahim: Market demand for specific energy sources will play a pivotal role in shifting the direction of the offshore rig market. As the energy transition progresses, demand for cleaner energy solutions will influence the evolution of offshore drilling, with a growing focus on sustainability and reduced environmental impact.

Equally important, the energy transition must be supported by harmonized regulations that create a clear and consistent framework for industry players. These regulations will be critical in enabling the development of advanced technologies and ensuring their widespread adoption across offshore operations.

Such regulatory alignment will help unblock barriers to essential factors like financial allocations and the development of advanced technologies, enabling offshore rig players to adopt cutting-edge solutions. As these advancements become more accessible, companies like Velesto will continue to innovate and integrate sustainable practices, ensuring that our offshore operations not only meet today’s energy needs but also contribute to a cleaner, more sustainable energy future.

Future endeavors toward zero-emission rigs

• Do you believe rigs with installed carbon capture technologies and powered by renewables or running on other clean energy options will be the direction the lion’s share of the offshore drilling market will pick to curb its emissions footprint?

Megat Zariman Abdul Rahim: Technological advancement and maturity will be essential in driving the decarbonization of offshore drilling operations. The shift towards rigs powered by renewables and equipped with carbon capture technologies is certainly on the horizon, but it will depend on the suitability of these technologies to meet operational needs, including providing the optimum energy to power rigs while avoiding technological and safety disruptions.

We believe that drilling rigs will evolve towards more sustainable operations, potentially achieving zero emissions in the future along with the maturity of carbon capture and renewable energy integration. Specifically, Increasing investments in research and development (R&D) are driving innovation in areas such as green methanol, energy storage, and offshore renewable energy power hubs—all of which will be instrumental in reducing the emissions footprint of offshore drilling.

Velesto remains dedicated to advancing such innovative solutions, as we continue to explore ways to enhance the sustainability of our operations while meeting both today’s energy demands and future environmental goals.

• What are some primary headwinds and tailwinds in the offshore energy industry, and how are these affecting your outlook for 2025 and beyond?

Megat Zariman Abdul Rahim: Headwinds in the offshore energy industry include delays in CAPEX/investment, demand uncertainty, and geopolitical risks. The projected decrease in overall activity will require us to be more strategic in planning and resource allocation. These challenges necessitate flexibility in operations and increased focus on optimizing resource use to ensure continued growth.

On the other hand, tailwinds such as lower inflation and financing costs are practical opportunities for Velesto. With lower financing costs, we can invest in advanced technologies that drive innovation and improve operational efficiency, making us more competitive. Lower inflation will help keep operational expenses in check, providing financial stability and supporting our cost discipline initiatives. This, in turn, will enable us to focus on strengthening our margins and ensuring profitability.

Despite these headwinds, our focus remains clear: we are committed to profitability and strengthening our margins to meet shareholder expectations. Our priorities for 2025 and beyond remain unchanged:

– We will continue striving for Zero LTI and challenge ourselves to achieve zero injury incidents.

– Maintaining 99% uptime across our operations will remain a fundamental priority.

– Embracing innovation and advancing our technological capabilities will drive our competitive edge.

– We remain committed to sustainable practices in every aspect of our operations.

Equally important is our commitment to cost discipline. In 2025, we will place a strong emphasis on reducing operational expenditure and overhead costs to improve efficiency and strengthen our financial performance, ensuring we remain agile and resilient in meeting our goals.

• Do you expect to see an uptick in hydrocarbon exploration next year? Could you tell us more about your upcoming drilling projects? Are there new frontiers Velesto is interested in exploring?

Megat Zariman Abdul Rahim: In 2025, drilling activity in Malaysia is expected to continue, although at a slightly slower pace compared to 2024. While exploration activities in Malaysia are experiencing some slowdown, development activities persist, despite delays in certain projects.

Currently, three rigs continue to operate with Petroliam Malaysia Berhad (PCSB), and there is one contract in Malaysia under negotiation. Velesto is actively expanding its presence in the Southeast Asia. We have two rigs bidding for various opportunities in Thailand, Vietnam, and Indonesia – markets where we have previously operated. This aligns with our strategy to diversify and strengthen our regional footprint.

While maintaining a strong focus on operations in Malaysia, we are also exploring new growth avenues in regions where we have extensive experience. By leveraging this foundation, we aim to expand into high-potential markets, positioning Velesto for long-term success in the offshore drilling sector

Velesto remains committed to expanding its services and technological capabilities, ensuring that we are well-positioned to meet the evolving needs of the energy sector. We will continue to pursue opportunities that align with our business models, including leveraging innovation and operational excellence in both established and new markets.

• What do you think is in store for the oil and gas industry in Malaysia, the region, and across geographies by mid-century and afterward?

Megat Zariman Abdul Rahim: Gas will continue to be a key component of the energy mix in the Southeast Asia region up to 2050 and beyond, as it plays a vital role in supporting the global shift towards decarbonization. As such, Malaysia and other countries will need to either increase investments in exploration and production of oil and gas reserves or face an increasing reliance on imported energy to meet their demands.

Velesto is strategically positioned to contribute to this energy landscape through our expertise in drilling services and technological capabilities. We are committed to supporting Malaysia’s energy security by leveraging advanced drilling technology and operational efficiency to tap into domestic oil and gas reserves while reducing environmental impact.

Our focus on innovative technologies, such as autonomous drilling and emission reduction systems, further reinforces our commitment to supporting the energy needs of today while contributing to a greener future. Through innovative partnerships and continuous technological advancements, Velesto will help meet the energy demands of today while ensuring that we contribute to the energy transition in the region and beyond.

• How does Velesto plan to leverage its current achievements to evolve and bolster its operations to respond to the demands of the emerging and future markets within the offshore energy domain?

Megat Zariman Abdul Rahim: Velesto has a strong track record in operating jack-up drilling rigs, positioning us as a trusted and reliable partner in the offshore energy sector. Building on this solid foundation, we are evolving towards an asset-light strategy, which enhances our flexibility and ability to expand our operating capacity into new market segments. This strategy enables us to adapt quickly to emerging demands, ensuring we remain agile in a dynamic market.

Our commitment to innovation is central to our growth, and we are actively developing new partnerships to enhance our technological offerings. These partnerships will allow us to integrate cutting-edge technologies into our operations, reinforcing our competitive edge.

We place a high priority on safety and operational excellence, which are integral to delivering superior service and ensuring the reliability of our operations. By advancing our technological capabilities and maintaining the highest standards of safety and performance, Velesto is positioned to continue meeting the evolving demands of both current and future offshore energy markets.

• As the largest Malaysian jack-up rig operator, does Velesto have plans to expand its six-unit fleet either through mergers or acquisitions before 2030? What are your thoughts on the ongoing market consolidation moves?

Megat Zariman Abdul Rahim: Velesto is strategically focused on optimizing its operations rather than expanding its fleet through mergers or acquisitions. We prioritize operating younger, more technically competitive rigs that align with market demand and deliver greater operational efficiencies. This approach ensures sustained operational excellence and positions us for enhanced performance in the long term.

To expand our operating capacity and explore new market segments, such as deepwater operations, we are exploring new partnerships, such as lease agreements, which allow us to scale without necessarily owning additional assets. This flexibility enables us to be agile in a rapidly evolving industry while maintaining focus on our core strengths.

The drilling market remains fragmented, and we anticipate continued consolidation. However, we believe this can occur not only through mergers and acquisitions but also via other strategic business combinations that align with our long-term vision. Innovation and advanced technologies will play a pivotal role in maintaining our competitive edge, ensuring that Velesto stays at the forefront of the energy sector.

In December 2024, Velesto proactively brought forward the special periodic survey for the NAGA 8 rig following a contract suspension. This initiative prepares the rig for future work offshore Malaysia or beyond, reflecting our commitment to maintaining a modern and efficient fleet. 

Additionally, our collaboration with Petronas in November 2024 to implement automation and robotics on our rigs highlights our dedication to enhancing technological capabilities and operational efficiency. Through these initiatives, we continue to embrace innovation, safety, and operational excellence, driving our competitive edge in the industry.

• What do you consider to be the best course of action and ultimate pathway for further growth in Asia? Could you share with Offshore Energy the top three trends within the offshore industry Velesto is keen on following?

Megat Zariman Abdul Rahim: The offshore industry in Asia is rapidly evolving, driven by growing energy demand, sustainability imperatives, and technological advancements. Velesto’s strategic approach aligns with these key trends to capitalize on these shifts through innovation, technological advancement, and strategic partnerships. To drive further growth in Asia, we believe the following pathways are essential:

– Technology as a Competitive Advantage
Technology is essential for efficiency and Velesto is at the forefront of digitalization and automation in offshore drilling. Our Velesto Drilling Automation System and smart drilling solutions are integral to our operations, enabling us to optimize performance, reduce downtime, and enhance safety. Our collaboration with SLB in leveraging advanced drilling technologies has further supported our ongoing efforts in technological innovation, helping us maintain competitiveness and efficiency in the offshore energy sector.

This content is available after accepting the cookies.

Change cookie-settings View on Offshore-energy.

– Emissions Management as a License to Operate
With emissions management becoming a critical factor in obtaining a license to operate, Velesto is committed to sustainable operations that align with global decarbonization goals. Our partnership with Petronas focuses on carbon management solutions, supporting our shared objective of achieving net zero by 2050. Through emissions monitoring technologies and ongoing operational improvements, we are reducing our environmental footprint while maintaining operational excellence, in line with both national and international sustainability standards.

– Driving Growth Through Strategic Partnerships in Asia
In the evolving energy landscape, Velesto’s strategic partnerships with leaders like SLB and Petronas are crucial to our success. These collaborations enable us to leverage innovative technologies, expand our service offerings, and explore cleaner energy solutions. Our work with SLB advances drilling technologies, while our partnership with Petronas focuses on sustainable offshore practices. These alliances strengthen our position in Asia’s energy transition, positioning Velesto at the forefront of offshore operations and the shift to cleaner, more sustainable energy.

• Do you believe the rising geopolitical tensions will have a lasting impact on the Asian energy landscape?

Megat Zariman Abdul Rahim: Geopolitical tensions have always had a significant impact on the global energy landscape, and Asia, as a key energy hub, will certainly not be immune to these shifts. Rising geopolitical risks can affect energy supply chains, market stability, and access to resources, which may result in price fluctuations and uncertainties. However, the impact will depend on how the energy industry adapts to these challenges.

For Velesto, the key is to maintain operational resilience in the face of such volatility. We understand the critical nature of providing reliable, secure energy solutions, especially in times of uncertainty. Our strategic approach centers on diversifying services and enhancing operational efficiencies across the region to ensure we continue to meet the energy demands of today while preparing for future energy needs.

By leveraging our technological capabilities in automation and digitalization, we are better equipped to optimize drilling operations and reduce dependency on external factors, making us less vulnerable to geopolitical disruptions. Additionally, we are continuously focused on sustainability and reducing emissions, aligning with global energy transition trends, which adds a layer of stability in a shifting energy market.

As geopolitical dynamics evolve, Velesto remains committed to navigating these risks with agility, ensuring we maintain high levels of service excellence and continue to deliver value to our clients and stakeholders. Our collaboration with clients and our ongoing investments in innovation and sustainable practices will enable us to thrive, even in the face of rising geopolitical tensions.

• Thank you for this interview! Is there anything you would like to add or emphasize about Velesto’s vision for the future or the global rig market outlook?

Megat Zariman Abdul Rahim: The rig market is undergoing significant change, driven by rapid technological advancements, an increasing focus on sustainability, and shifts in global energy demand. Velesto is positioning itself to not only navigate these changes but to lead in shaping the future of the industry. By embracing innovative solutions, we aim to meet the challenges of today while proactively preparing for the demands of tomorrow. Our approach ensures that we are not just adapting to industry trends, but actively influencing the direction of the market through sustainable practices and technological excellence.

In line with our commitment to sustainability, Velesto has continued to focus on reducing our carbon footprint, leveraging automation, and improving the technological capabilities of our rigs. For instance, we are enhancing our fleet’s energy efficiency and integrating digital solutions that allow for smarter, data-driven decision-making. This is not just about meeting current market needs but also anticipating the energy transition and supporting the shift toward cleaner energy sources.

Our business model is evolving in response to market trends, with a strong emphasis on expanding our service offerings and innovative partnerships. We are working alongside clients to explore solutions that drive sustainable oil and gas production, while also embracing alternative energy opportunities. Additionally, collaboration is key as we explore ways to integrate CCUS technologies, which are essential for decarbonization efforts in the industry.

As we focus on the future, Velesto’s vision for the future is centered around leveraging technological innovation, operational excellence, and sustainability to ensure we are not only contributing to the energy needs of today but also playing a pivotal role in shaping the future of energy.

---

ADVERTISE ON OFFSHORE ENERGY

𝐃𝐨 𝐲𝐨𝐮 𝐰𝐚𝐧𝐭 𝐭𝐨 𝐠𝐫𝐚𝐛 𝐭𝐡𝐞 𝐚𝐭𝐭𝐞𝐧𝐭𝐢𝐨𝐧 𝐨𝐟 𝐲𝐨𝐮𝐫 𝐭𝐚𝐫𝐠𝐞𝐭 𝐚𝐮𝐝𝐢𝐞𝐧𝐜𝐞 𝐢𝐧 𝐨𝐧𝐞 𝐦𝐨𝐯𝐞? 𝐋𝐨𝐨𝐤 𝐧𝐨 𝐟𝐮𝐫𝐭𝐡𝐞𝐫 𝐭𝐡𝐚𝐧 𝐎𝐟𝐟𝐬𝐡𝐨𝐫𝐞 𝐄𝐧𝐞𝐫𝐠𝐲! 𝐎𝐮𝐫 𝐜𝐨𝐧𝐭𝐞𝐧𝐭 𝐢𝐬 𝐫𝐞𝐚𝐝 𝐛𝐲 𝐭𝐡𝐨𝐮𝐬𝐚𝐧𝐝𝐬 𝐨𝐟 𝐩𝐫𝐨𝐟𝐞𝐬𝐬𝐢𝐨𝐧𝐚𝐥𝐬 𝐞𝐧𝐠𝐚𝐠𝐞𝐝 𝐢𝐧 𝐨𝐢𝐥 & 𝐠𝐚𝐬, 𝐦𝐚𝐫𝐢𝐭𝐢𝐦𝐞, 𝐨𝐟𝐟𝐬𝐡𝐨𝐫𝐞 𝐰𝐢𝐧𝐝, 𝐠𝐫𝐞𝐞𝐧 𝐦𝐚𝐫𝐢𝐧𝐞, 𝐡𝐲𝐝𝐫𝐨𝐠𝐞𝐧, 𝐬𝐮𝐛𝐬𝐞𝐚, 𝐦𝐚𝐫𝐢𝐧𝐞 𝐞𝐧𝐞𝐫𝐠𝐲, 𝐚𝐥𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐯𝐞 𝐟𝐮𝐞𝐥𝐬, 𝐬𝐡𝐢𝐩𝐩𝐢𝐧𝐠, 𝐚𝐧𝐝 𝐨𝐭𝐡𝐞𝐫 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐢𝐞𝐬 𝐨𝐧 𝐚 𝐝𝐚𝐢𝐥𝐲 𝐛𝐚𝐬𝐢𝐬.

ADVERTISING OPTIONS

Follow Offshore Energy’s Fossil Energy market on social media channels: