Malaysia’s oil and gas services Velesto has secured a drilling contract worth approximately $16.5 million from Jadestone Energy for operations at the East Belumut field offshore Malaysia.
The contract, awarded to Velesto’s wholly owned subsidiary Velesto Drilling, involves the provision of the NAGA 8 jack-up rig to support infill drilling activities. Operations are expected to start in March 2026 and run for four months.
NAGA 8 is a premium independent-leg cantilever jack-up drilling rig with a drilling depth capability of 30,000 feet and a rated operating water depth of 400 feet.
“This contract reflects confidence in Velesto’s operating discipline and ability to meet client requirements consistently. We appreciate the trust placed in us and remain focused on safe operations that support rig utilization,” said Megat Zariman Abdul Rahim, President of Velesto.
Jadestone began a four-well infill program at the East Belumut field in August 2023, achieving first oil two months ahead of schedule. The campaign added four new horizontal oil producers, quadrupling field output and delivering incremental gross oil production of approximately 8,000 barrels per day.
The infill program also delivered incremental gross reserves of 4.2 million barrels, including 1.3 million barrels from existing wells after the economic limit was extended by about three years.
Jadestone has previously announced plans for further infill drilling under Phase 9 of the PM323 license starting in 2026.
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