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Velesto Gets Contract Extension from Hess

February 12, 2019

Image: Malaysia Petroleum Resources Corporation

Malaysian drilling contactor Velesto Drilling said that the oil company Hess Exploration and Production Malaysia has extended the contract for the Naga 8 jack-up drilling rig in North Malay Basin, Malaysia.

Naga 8 jack-up rig is owned by Velesto Drilling (previously known as UMW Offshore Drilling), a subsidiary of Velesto Energy Bhd (formerly known as UMW Oil & Gas Corp Bhd).

In a filing with Bursa Malaysia, Velesto said that the contract was for 18 months plus extensions.

The value of contract to provide high pressure high temperature jack-up drilling rig and services is estimated to be approximately $38 million, and it began in the second quarter of 2018.

NAGA 8 is a premium independent-leg cantilever jack-up rig that has a drilling depth capability of 30,000 feet and has a rated operating water depth of 400 feet. The rig is constructed by Keppel (KPELF) in Singapore.

The North Malay Basin is a natural gas asset comprised of nine discovered natural gas fields with an estimated gross recoverable resource of more than 1.5 trillion cubic feet of natural gas and more than 20 million barrels of condensate.

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