KUALA LUMPUR (Aug 10): Velesto Energy Bhd announced that it had completed the offline capabilities upgrading works for NAGA 5 and NAGA 6, making them the first Malaysian jack-up drilling rigs to be equipped with offline capabilities. 

The offline capabilities of the two jack-up rigs will reduce the total time spent on wells, as the rigs are able to do multiple scopes of activities while drilling, said Velesto in a statement on Wednesday (Aug 10).

With fewer rig days per well, Velesto said the offline capabilities will help to bring down the overall drilling project cost for clients, and indirectly reduce the industry’s emission footprint.

The oil and gas offshore drilling services provider said these upgrades will cater to clients’ requirements, and increase the competitiveness of these rigs during contract bidding.

“This is the first time that Velesto has carried out upgrades for its jack-up rigs. Given the current upward trend in the drilling segment, the successful completion could not be timelier. It also reflects our commitment to our clients in driving performance through operational excellence, while ensuring the highest level of safety. 

“The offline capabilities will further strengthen Velesto’s value creation as a local company on a par with global players, offering sustainable competitive advantages,” said Velesto president Megat Zariman Abdul Rahim.

Earlier this year, NAGA 5 secured a work order from PTTEP HK Offshore Ltd, and NAGA 6 from Petronas Carigali Sdn Bhd. 

NAGA 5 commenced its operations in July, while NAGA 6 is expected to commence operations towards the end of August, within Malaysia, upon the completion of the upgrades.

At the time of writing on Wednesday, Velesto was up half a sen or 6.67% at eight sen, giving it a market capitalisation of RM620.73 million.