KUALA LUMPUR (May 15): Velesto Energy Bhd (KL:VELESTO) has secured its first asset-light rig contract from Hibiscus Petroleum Bhd (KL:HIBISCUS) for the provision of a third-party jack-up drilling rig for offshore operations in Malaysia.

In a statement on Friday, Velesto Energy said the contract was awarded to its wholly owned subsidiary, Velesto Drilling Sdn Bhd, by Hibiscus Oil & Gas Malaysia Ltd.

However, the group did not disclose the value of the contract.

The contract covers Hibiscus’ 2026 offshore drilling campaign in Malaysia, covering the drilling services of eight plug and abandonment (P&A) wells and one exploration well, with an option for up to seven additional wells.

Operations are scheduled to commence in May 2026.

Velesto Energy president Megat Zariman Abdul Rahim said the award marks the group’s first asset-light arrangement using a third-party jack-up rig under a charter arrangement.

“It broadens how we can execute projects while maintaining the same discipline and consistency in how we operate. This gives us greater flexibility in responding to market opportunities and supporting our clients’ needs,” it added.

Velesto Energy’s share price closed up one sen or 3.13% to 33 sen, giving the stock a market capitalisation of RM2.73 billion. The stock has doubled over the past one year, from 16.5 sen.