KUALA LUMPUR (March 2): Velesto Energy Bhd (KL:VELESTO) has been awarded a drilling contract worth US$157 million (RM617.4 million) by PETRONAS Carigali Sdn Bhd.

Velesto said in a bourse filing on Monday that its NAGA 2 rig is undertaking drilling operations under the new agreement, which began last month, for five years. NAGA 2 is an independent-leg cantilever jack-up drilling rig with a rated operating water depth of 350 feet and a drilling depth capability of up to 30,000 feet.

The award is expected to enhance rig utilisation and strengthen earnings visibility from 2026 through 2030, Velesto said. 

Velesto president Megat Zariman Abdul Rahim described the award as “an important milestone and an excellent start to 2026”, adding that the long-term engagement underscores the group’s progress in maximising core asset utilisation while reinforcing earnings stability.

“We appreciate the trust placed in Velesto and remain committed to delivering safe operations and consistent performance throughout the contract period,” he said.

Shares in Velesto closed one sen or 3.3% higher at 31.5 sen on Monday, valuing the group at RM2.59 billion. Over the past one year, the stock has gained 85%.

Note: The article has been amended for accuracy.