OTHERS AWARD OF CONTRACT FOR THE PROVISION OF JACK-UP DRILLING RIGS FOR PETRONAS CARIGALI SDN BHD
VELESTO ENERGY BERHAD |
Type | Announcement | ||||||||||||||||||
Subject | OTHERS |
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Description | AWARD OF CONTRACT FOR THE PROVISION OF JACK-UP DRILLING RIGS FOR PETRONAS CARIGALI SDN BHD |
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Reference is made to the announcement dated 11 March 2022 on the award of contract for the Provision of Jack-Up Drilling Rigs for PETRONAS Carigali Sdn Bhd (“PCSB”).
1. INTRODUCTION The Board of Directors of Velesto Energy Berhad (“VEB”) is pleased to announce that Velesto Drilling Sdn Bhd (“VED”), a wholly-owned subsidiary of Velesto Malaysian Ventures Sdn Bhd, which in turn is a wholly-owned subsidiary of VEB, has received three (3) Notice of Assignments related to the contract for the Provision of Jack-Up Drilling Rigs for PCSB (“Contract”), the approval of which was received today.
The Contract is for the provision of services of three (3) jack-up rigs, namely “NAGA 3”, “NAGA 4” and “NAGA 6”, with an estimated combined contract value of USD128 million.
2. DETAILS The details of the Contract is summarised as below:
The Contract for the above commences from Quarter 3, 2022 until the completion of each respective campaign.
3. INFORMATION ON PARTIES 3.1 Information on VED VED was incorporated in Malaysia under the Companies Act, 1965 on 29 July 2003. VED is principally involved in the offshore drilling business and operations and other engineering services for oil and gas exploration, development and production in Malaysia and overseas.
3.2 Information on PCSB PCSB, is a wholly-owned subsidiary of Petroliam Nasional Berhad, is a leading exploration and production company. PCSB was incorporated in Malaysia under the Companies Act, 1965 on 11 May 1978 and has its registered office at Tower 1, Petronas Twin Towers, Kuala Lumpur City Centre, 50088 Kuala Lumpur, Malaysia. The principal activities of PCSB are exploration, development and production of oil and gas.
4. FINANCIAL EFFECTS The provision of the above-mentioned services is expected to contribute to the earnings and net assets of VEB Group during the respective campaign period for the financial period ending 31 December 2023 and 2024.
5. RISK ASSOCIATED WITH THE CONTRACTS The risks associated with the execution of the Contract are operational and execution risks, which will be mitigated and/or managed by VED, a company with a proven successful track record of undertaking drilling programmes.
6. DIRECTORS AND SUBSTANTIAL SHAREHOLDERS INTEREST None of the Directors and/or the substantial shareholders of VEB and/or persons connected with the Directors and/or substantial shareholders have any interest, direct or indirect in the above Contract.
7. STATEMENT BY DIRECTORS The Board of Directors of VEB is of the opinion that the acceptance of the Contract herein is in the best interest of VEB Group.
This announcement is dated 9 May 2023. |
Announcement Info
Company Name | VELESTO ENERGY BERHAD |
Stock Name | VELESTO |
Date Announced | 09 May 2023 |
Category | General Announcement for PLC |
Reference Number | GA1-08052023-00031 |