What's Happening?
Velesto Energy Berhad has been awarded a significant drilling contract by Jadestone Energy (Malaysia) Pte Ltd., valued at approximately $16.5 million. This contract involves infill drilling operations at the East Belumut field, located offshore Malaysia.
The project will utilize Velesto's premium independent-leg cantilever jackup rig, NAGA 8, for a four-month campaign starting in March 2026. The rig is designed to drill to depths of 30,000 feet and operate in water depths of up to 400 feet. This operation is part of Phase 9 development drilling aimed at sustaining production from the mature offshore asset. Velesto's fleet, which includes six jackup rigs and two hydraulic workover units, operates across several Southeast Asian markets, including Indonesia, Vietnam, Thailand, and the Philippines.
Why It's Important?
The contract highlights the ongoing demand for jackup drilling services in Southeast Asia, a region with significant offshore oil and gas activity. For Velesto, this contract not only ensures the utilization of its fleet but also strengthens its position in the competitive Southeast Asian market. The successful execution of this contract could lead to further opportunities in the region, potentially boosting the company's revenue and market share. For Jadestone Energy, the infill drilling is crucial for maintaining production levels at the East Belumut field, which is vital for meeting energy demands and sustaining economic growth in the region.
What's Next?
The deployment of the NAGA 8 rig in March 2026 marks the beginning of the drilling campaign, which will be closely monitored by industry stakeholders. Successful completion of the project could lead to additional contracts for Velesto, as other companies in the region may seek similar services to enhance their production capabilities. Additionally, the outcome of this project could influence future investment decisions in the Southeast Asian offshore drilling sector, potentially attracting more international players to the market.
