Velesto Energy Secures Offshore Drilling Contract in Indonesia

Malaysia’s Velesto Energy has announced that its offshore drilling unit has successfully secured a contract for one of its jackup rigs to operate offshore Indonesia.

The contract, awarded by PC Ketapang II, PC North Madura II, and Petronas, is for Velesto’s Naga 8 jackup rig. Scheduled to commence in July 2025, the contract has a firm period of four years, covering 12 firm wells and three optional wells, with an estimated value exceeding $90 million. This deal is expected to enhance Velesto’s rig utilisation and earnings visibility from 2025 to 2028.

During a suspension period from February to July 2026, Velesto retains the right to explore other opportunities for the rig. Operations are anticipated to resume in July 2026.

The Naga 8 jackup rig, built in 2015, is a premium independent-leg cantilever jack-up drilling rig with a drilling depth capability of 30,000 feet and a rated operating water depth of 400 feet.

Commenting on the contract award, Velesto President Megat Zariman Abdul Rahim stated, “This contract reflects our commitment to expanding Velesto’s presence in Southeast Asia. It solidifies our strategic growth in the region.”

Earlier this week, Velesto also secured a contract for its Naga 4 jackup rig from Phu Quoc Petroleum Operating Company in Vietnam. The rig is set to undertake drilling operations for over 40 wells on behalf of the Vietnamese firm.