KUALA LUMPUR (Oct 4): Velesto Energy Bhd (KL:VELESTO) has inked a memorandum of understanding (MOU) for a three-year collaboration with SLB to enhance its rig capabilities.

Designated Velesto rigs will incorporate well delivery solutions and drilling emissions management solutions from SLB (formerly Schlumberger), to enhance and optimise drilling performance and monitor emissions, Velesto said in a statement.

The agreement "represents a significant shift" in Velesto's approach to enhancing its rig technical capabilities, Velesto president Megat Zariman Abdul Rahim said.

"By integrating high quality service, safety, and the latest in digital and technological advancements, we are committed to delivering high performance and efficient outcomes for our clients," Velesto added.

The MOU was signed between SLB and Velesto's wholly owned unit Velesto Drilling Sdn Bhd at the SLB Digital Forum 2024 in Monaco.

In the last three months, the group has completed its mandatory five-yearly periodical inspection, maintenance and upgrade of two rigs, Naga 2 in August and Naga 6 in October.

Naga 6 and Naga 5 saw their maiden upgrade works in 2022, which incorporated offline capabilities that contribute to fewer rig days per well — and subsequently lower overall costs and emissions — thanks to the ability to undertake multiple scope of activities while drilling.

Shares of Velesto traded up one sen or 5.13% to 20.5 sen at 2.42pm, giving it a market capitalisation of RM1.64 billion.