KUCHING: Velesto Drilling Sdn Bhd has secured a US$131 million (RM541 million) contract from Carigali Hess Operating Company Bhd for the provision of 10K jack up drilling rig for its 2020 drilling programme.
The contract is expected to commence in second half of 2020 for a duration of three years, with three extension options of six months each, said Velesto Energy Bhd (VEB) (formerly UMW Oil & Gas Corporation Bhd).
VEB’s wholly-owned subsidiary Velesto Malaysian Ventures Sdn Bhd owns 100 percent of Velesto Drilling.
VEB is principally involved in offshore drilling business and operations and other engineering services for the oil and gas exploration, development and production in Malaysia
and overseas.
Carigali Hess is a joint-venture oil and gas company between PCJDA Ltd and Hess Oil Company of Thailand Ltd which is engaged in gas production in Block A-18 of the joint development area administered by the Malaysian-Thailand Joint Authority.
Velesto said the group would assign Naga 8 — a premium independent-leg cantilever jack-up rig that has a drilling depth capacity of 30,000 ft and has a rated operating water depth of 400 ft — for the contract.
VEB said the contract is expected to contribute positively towards the earnings and net assets of the group during the financial period ending
Dec 31, 2020.
The latest contract was secured about two months after Velesto Drilling was awarded a US$8 million contract by Petronas Carigali Sdn Bhd for the provision of jack up drilling rig Naga 7.
That contract is to drill two firm wells. Meanwhile, Perdana Petroleum Bhd has obtained approval from Bank Negara for an extension of time up to January 2020 for the issuance of redeemable convertible preference shares (RCPS) to the non-resident shareholders of the company.
Bank Negara had approved the issuance of the RCPS on Sept 6. Perdana Petroleum is involved in the charter of offshore marine vessels for the oil and gas industry.
Perdana Petroleum’s proposed rights issue of RCPS is expected to raise a minimum of RM455 million and maximum of RM506 million from its shareholders.
The RCPS has a tenure of 10 years, and one RCPS is convertible into one Perdana Petroleum share. Perdana Petroleum’s major shareholder Dayang Enterprise Holdings Bhd undertakes to subscribe up to the value of RM455 million for the RCPS.
