Velesto bags US$31m deal

PETALING JAYA: Velesto Energy Bhd’s indirectly owned subsidiary Velesto Drilling Sdn Bhd has bagged a US$31.08million (RM125.87 million) contract for the provision of one jack-up drilling rig and associated services from Roc Oil (Sarawak) Sdn Bhd.
The company formerly known as UMW Oil & Gas Corp Bhd told the stock exchange that it received a letter of award on June 5, for the contract which entails the provision of the Jack-Up Drilling Rig and associated services for Roc Oil’s D35 Phase 2 Infill Drilling Programme.
The tentative commencement date of the contract for 11 firm wells is expected to commence in August 2018.
Velesto will assign the Naga 4 for this contract, which 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.
The contract is expected to contribute positively to the earnings and net assets of the group during the contract period for the financial period ending Dec 31.