Malaysian oil and gas company Petronas Carigali, a subsidiary of Petronas, has awarded a two-year contract to Velesto Energy's subsidiary Velesto Drilling for the provision of jack-up drilling rigs.
The contract, which covers a suite of Velesto's NAGA jack-up rigs, will see the drilling firm provide its jack-ups to Petronas Carigali on a "call out" basis by Petronas Carigali, subject to the rig availability and suitability based on Petronas Carigali's requirement.
The two-year firm deal is expected to start in the first quarter of 2022 and includes two one-year extension options.
Velesto's NAGA rigs (NAGA 2, NAGA 3, NAGA 4, NAGA 5, NAGA 6, NAGA 8) all have a maximum drilling depth capability of 30,000 feet (9144 meters), with operating maximum water depth ranging between 350 feet (106.68 meters) and 400 feet (121.92 meters).
Velesto did not say how much it expected to earn during the contract tenure.
Back in October 2021, Velesto received a letter of award from Petronas Carigali for the jack-up drilling rig NAGA 2.
It was then said that Petronas Carigali would, from December, use the Naga 2 rig to drill five wells, under the contract worth $12,4 million.
The Naga 2 is a jack-up rig with a drilling depth capability of 30,000 feet (9144 meters) and has a rated operating water depth of 350 feet (106.68 meters.)