KUALA LUMPUR: Velesto Energy Bhd's subsidiary Velesto Drilling Sdn Bhd has received a two-year contract extension for use three of its jack up drilling rigs Naga 2, Naga 4, and Naga 6 from Petronas Carigali Sdn Bhd.
The company said inclusive of its current drilling campaign assigned between 2023 and 2024, the jobs are worth a collective RM1.25 billion (US$265 million).
The contract extension starts on Feb 7, 2024, and runs until Feb 6, 2026, Velesto said in a filing to Bursa Malaysia today.
Velesto said the contract's extension highlights strong utilisation of Velesto's rigs for 2024.
"It also indicates the potential for robust financial performance in the coming years, with an order book extending to 2025 and 2026," it added.
Velesto said the extension also underscores the group's commitment to safety and service excellence, which it consistently delivers across all projects.
The contracts are expected to contribute positively towards the earnings and net assets of the group.
Velesto's share price was up 1.79 per cent to 28.5 sen a share, giving it a market capitalisation of RM2.3 billion.