Petronas hires two Velesto rigs in $21 million deal

Malaysian offshore drilling contractor Velesto Drilling has won a drilling services contract worth nearly $21 million with compatriot oil giant Petronas Carigali.

Velesto Drilling, a subsidiary of Velesto Malaysian Ventures, which in turn is a subsidiary of Velesto Energy, has received two letters of award from Petronas Carigali for the provision of jack-up drilling rig services.

According to Velesto’s Bursa Malaysia announcement from last Friday, the contracts are for the procurement of services of two jack-up rigs, namely NAGA 2 and NAGA 5, with an estimated combined contract value of $20.76 million.

For the provision of drilling rig services for Petronas Carigali’s drilling programme, Velesto Energy assigned its NAGA 2 to drill three firm wells, with expected start date of between 15 May 2021 to 15 June 2021.

NAGA 2 is a premium independent-leg cantilever jack-up rig with drilling depth capability of 30,000 feet and has a rated operating water depth of 350 feet.

Furthermore, for the provision of drilling rig services for Petronas Carigali’s drilling programme, Velesto assigned its NAGA 5 to drill one firm well with an extension option of one plus one well, on the same terms and conditions with expected start date between 1 April 2021 to 14 April 2021.

NAGA 5 is a premium independent-leg cantilever jack-up drilling rig that has a drilling depth capability of 30,000 feet and has a rated operating water depth of 400 feet.

These two jack-up rigs also previously worked for Petronas Carigali under a contract awarded in April 2019 to four Velesto jack-up rigs.