VELESTO

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OTHERS TERMINATION OF CONTRACT FOR THE PROVISION OF A JACK UP DRILLING UNIT FOR CONOCOPHILLIPS SARAWAK LIMITED AND CONOCOPHILLIPS SARAWAK OIL LIMITED

VELESTO ENERGY BERHAD

Type Announcement
Subject OTHERS
Description
TERMINATION OF CONTRACT FOR THE PROVISION OF A JACK UP DRILLING UNIT FOR CONOCOPHILLIPS SARAWAK LIMITED AND CONOCOPHILLIPS SARAWAK OIL LIMITED

Reference is made to the following:

  1. An announcement on 26 March 2021 on the award of contract (“Contract”) to Velesto Drilling Sdn Bhd (“VED”) for the provision of a jack-up drilling unit to ConocoPhillips Sarawak Limited and ConocoPhillips Sarawak Oil Limited (collectively referred as “ConocoPhillips”), to which VELESTO NAGA 7 was assigned for this Contract; and
  2. Announcements on 4 and 6 May 2021 regarding the incident where VELESTO NAGA 7 submerged Offshore Sarawak on 3 - 4 May 2021.

The Board of Directors of Velesto Energy Berhad wish to announce that the VED’s insurance underwriters have confirmed on 9 August 2021 that VELESTO NAGA 7 is a constructive total loss.

 

Pursuant to the terms of the Contract, in the event VED’s underwriters consider the Rig to be a total loss (including a constructive total loss), the Contract is considered terminated without notice as from the moment that the loss occurred.

 

With the termination of the Contract, the earnings of VEB Group for financial period ending 31 December 2021 is expected to be reduced by an estimated amount of USD8 million; which was the estimated value of the Contract.

 

This announcement is dated 17 September 2021.






Announcement Info

Company Name VELESTO ENERGY BERHAD
Stock Name VELESTO
Date Announced 17 Sep 2021
Category General Announcement for PLC
Reference Number GA1-17092021-00075