Velesto Energy bags US$38m contract extension for North Malay Basin

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KUALA LUMPUR (Feb 12): Velesto Energy Bhd (formerly known as UMW Oil & Gas Corp Bhd) has bagged a US$38 million contract extension to provide high pressure high temperature (HPHT) jack-up drilling rig and services for North Malay Basin, Malaysia.

In a filing with Bursa Malaysia today, Velesto said its wholly-owned subsidiary Velesto Drilling Sdn Bhd has received the extension from Hess Exploration and Production Malaysia BV.

Velesto said it will assign one of its rigs, NAGA 8, for this 18-month contract extension, which also comes with an option for further extension.

NAGA 8 is an independent-leg cantilever jack-up rig that has a drilling depth capability of 30,000ft and has a rated operating water depth of 400ft.

Velesto shares gained 0.5 sen or 2.5% to 20.5 sen today, with 4.06 million shares done, giving it a market capitalisation of RM1.68 billion.