Malaysia’s Velesto Secures Multi-Well Drilling Contract in Vietnam

Malaysia’s rig owner Velesto, a subsidiary of Velesto Energy, has recently clinched a significant drilling contract for one of its jack-up rigs off the coast of Vietnam, Southeast Asia. The company has partnered with Phu Quoc Petroleum Operating Company (PQPOC) in Vietnam to undertake drilling activities for more than 40 wells using their NAGA 4 jack-up rig.

The drilling operations are set to commence in the first half of 2026, marking a strategic move for Velesto as they expand their presence in the Southeast Asian market, particularly in Vietnam. With a drilling depth capability of 30,000 feet and a rated operating water depth of 400 feet, the NAGA 4 rig is well-equipped for the job.

Megat Zariman Abdul Rahim, President of Velesto, expressed his confidence in the company’s operational capabilities, stating, “This contract award reflects continued confidence in our operational capabilities and underscores our ability to deliver safe, efficient, and high-quality drilling services. It also supports our focus on securing value-accretive projects that strengthen earnings visibility and optimize fleet deployment.”

Rahim highlighted three key focus areas for Velesto, including digitalization, sustainability, and the shifting energy landscape in Asia. The company is actively positioning itself to capitalize on opportunities in the region and drive growth.

Recognizing the growing demand for gas and the need for decarbonization, Velesto is committed to exploring carbon capture, utilization, and storage (CCUS) initiatives. Additionally, the company is exploring greener alternatives such as green methanol to power offshore rigs, aligning with their goal to reduce carbon emissions.

As Velesto embarks on this new drilling assignment in Vietnam, the company remains dedicated to delivering high-quality services while embracing sustainable practices and innovative solutions for the future.