VELESTO

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OTHERS AWARD OF CONTRACT FOR THE PROVISION OF JACK-UP DRILLING RIGS FOR PETRONAS CARIGALI SDN BHD

VELESTO ENERGY BERHAD

Type Announcement
Subject OTHERS
Description
AWARD OF CONTRACT FOR THE PROVISION OF JACK-UP DRILLING RIGS FOR PETRONAS CARIGALI SDN BHD

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:

RIGS

DETAILS OF RIGS

ESTIMATED

WELLS

COMMENCEMENT

DATE

NAGA 3

Premium independent-leg cantilever jack-up drilling rig with drilling depth capability of 30,000 feet and has a rated operating water depth of 350 feet.

Eight (8) firm wells

Quarter 3, 2023

NAGA 4

Premium independent-leg cantilever jack-up drilling rig with drilling depth capability of 30,000 feet and has a rated operating water depth of 400 feet.

Four (4) firm wells plus an option of one (1) well plus an option of one (1) well

Quarter 3, 2023

NAGA 6

Premium independent-leg cantilever jack-up rig with drilling depth capability of 30,000 feet and has a rated operating water depth of 375 feet.

Six (6) firm wells

Quarter 3, 2023

Four (4) firm wells plus an option of one (1) well

Quarter 3, 2022

 

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