Expanding Horizons: Velesto Secures Multi-Year Drilling Campaign in Indonesia

Malaysia’s rig owner Velesto, a subsidiary of Velesto Energy, is making waves in Southeast Asia with its recent success in landing a new multi-year drilling campaign for one of its jack-up rigs off the coast of Indonesia. This achievement is a significant milestone in the firm’s expansion efforts in the region, aligning perfectly with its long-term strategy of broadening its presence in Southeast Asia.

Following closely on the heels of a 40-well drilling contract with Phu Quoc Petroleum Operating Company (PQPOC) in Vietnam for its NAGA 4 jack-up rig, Velesto has now secured a new drilling deal with PC Ketapang II, PC North Madura II, and Petronas North Ketapang for its NAGA 8 jack-up rig in Indonesia.

This new contract spans a firm period of four years, with operations scheduled to begin in July 2025. It includes 12 firm wells and three optional wells, providing Velesto with enhanced rig utilization and earnings visibility from 2025 to 2028. The NAGA 8 jack-up rig boasts a drilling depth capability of 30,000 feet and a rated operating water depth of 400 feet.

Notably, Velesto has planned a suspension period from February to July 2026, during which the company has the flexibility to explore other opportunities for the jack-up rig before resuming operations in July 2026, unless informed otherwise by the operator.

In response to this latest development, Megat Zariman Abdul Rahim, President of Velesto, expressed his enthusiasm, stating, “This contract award reflects our ongoing efforts to expand Velesto’s footprint in Southeast Asia. As the second contract secured in the region, it solidifies our commitment to this strategic growth.”

He continued, “We thank the client for their trust and the opportunity to contribute meaningfully to this partnership. Our focus remains on building a healthy portfolio of contracts that strengthen the outlook and create long-term value for our stakeholders.”