KUALA LUMPUR (Nov 4): Velesto Energy Bhd (KL:VELESTO) said on Wednesday it has secured a contract for its jack-up drilling rig Naga 3 to serve national oil and gas company PETRONAS.

The contract covers one firm well and one optional well, with operations expected to start in November, Velesto said in an exchange filing. The value and the end date of the contract from PETRONAS Carigali Sdn Bhd, the exploration and production arm of PETRONAS, were not disclosed.

“This contract adds to the group's contracted drilling activity in Malaysia and provides near-term revenue visibility” Megat Zariman Abdul Rahim, the president of Velesto, said in a statement. 

Velesto has a fleet of six jack-up drilling rigs, which are now fully contracted at least until the end of 2026 with the latest job for Naga 3. The company had a firm order book of RM1.3 billion at the end of July.

Demand for jack-up drilling rigs in Southeast Asia is growing and building into 2027 amid energy security concerns. Naga 3 was previously being sold to PT Indonesia Drilling Energy for US$63 million, or about RM258 million, before the transaction was called off in July.

Shares of Velesto paused for Wednesday's midday trading break at 17.5 sen, down half a sen or a little under 3%, ahead of the contract announcement.