What's Happening?
Velesto Energy Berhad has been awarded a $16.5 million contract by Jadestone Energy to conduct infill drilling operations at the East Belumut field offshore Malaysia. The contract involves deploying the NAGA 8 jackup rig for a four-month campaign starting
in March 2026. The rig, capable of drilling to depths of 30,000 feet and operating in water depths up to 400 feet, will support Phase 9 development drilling aimed at sustaining production from the mature offshore asset. This contract highlights the ongoing demand for jackup drilling services in Southeast Asia and supports Velesto's fleet utilization in the region.
Why It's Important?
The contract is significant for Velesto as it reinforces the company's position in the Southeast Asian drilling market. It reflects the continued demand for jackup rigs, which are essential for maintaining production levels in mature fields. The successful execution of this contract could enhance Velesto's reputation and lead to more opportunities in the region. For Jadestone Energy, the drilling operations are crucial for sustaining production and maximizing the output from the East Belumut field, which is vital for meeting energy needs and economic goals.
What's Next?
Velesto will prepare for the deployment of the NAGA 8 rig, ensuring that all logistical and operational aspects are in place for the March 2026 start. The success of this project could lead to further contracts in the region, as companies seek to optimize production from existing fields. Industry observers will be watching the project's impact on regional drilling activity and its potential to influence future investments in Southeast Asia's oil and gas sector.
