Friday 29 Mar 2024
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KUALA LUMPUR (July 3): Velesto Energy Bhd (VEB), formerly known as UMW Oil and Gas Corp Bhd, has bagged a US$31.04 million (RM126 million) offshore drilling services contract from ROC Oil (Sarawak) Sdn Bhd.

In a filing with Bursa Malaysia, VEB said the contract was awarded to Velesto Drilling Sdn Bhd, which is wholly owned by VEB's subsidiary Velesto Malaysian Ventures Sdn Bhd (previously UMW Malaysian Ventures Sdn Bhd).

VEB, which is involved in offshore drilling and operations, and other engineering services for oil and gas exploration, development and production in Malaysia and overseas, will provide one jack-up drilling rig and associated services for ROC's D35 Phase 2 "infill drilling" programme.

"The group would assign its NAGA 4 for this contract. NAGA 4 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," said VEB.

The group said the contract is expected to commence in August for 11 firm wells.

It added that the contract is expected to contribute positively to its earnings and net assets during the contract period for the financial period ending Dec 31, 2018.

VEB's share price rose half a sen or 1.82% to close at 28 sen today, for a market capitalisation of RM2.3 billion.

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