Velesto Energy Bhd (VEB) announced that its indirectly wholly owned subsidiary, Velesto Drilling Sdn Bhd, has secured a contract worth US$157 million from Petronas Carigali Sdn Bhd (PCSB) to provide a jack-up drilling rig for the 2026–2030 period. The contract marks a significant milestone for the Malaysian oil and gas drilling services provider as it strengthens the company’s order book and earnings visibility over the next five years.
In a filing with Bursa Malaysia, Velesto Energy explained that Velesto Drilling is a wholly owned subsidiary of Velesto Malaysian Ventures Sdn Bhd, which is in turn a wholly owned subsidiary of VEB. Under the contract, Velesto Drilling will deploy its NAGA 2 rig to fulfil PCSB’s drilling requirements, starting in February 2026 and continuing through to 2030.
The NAGA 2 is an independent-leg cantilever jack-up drilling rig capable of drilling to depths of up to 30,000 feet, with a rated operating water depth of 350 feet. The rig is designed to support complex offshore drilling operations and has been a key asset in Velesto’s fleet, allowing the group to offer specialised drilling services across Southeast Asia and Malaysia.
“The contract is expected to contribute positively to the group’s earnings and net assets throughout the five-year period,” the company noted in its filing.
VEB President Megat Zariman Abdul Rahim said the award represents a major achievement for the company and sets a strong tone for 2026. “The five-year engagement for NAGA 2 reflects our ongoing progress in maximising the utilisation of our core assets while strengthening earnings visibility,” he said.
He added that the award demonstrates the trust placed in Velesto by one of Malaysia’s leading oil and gas operators and reinforces the group’s commitment to maintaining safe, reliable, and high-performance operations. “We remain focused on delivering consistent performance and disciplined execution across our operating markets in Southeast Asia and Malaysia,” Megat Zariman said in a separate filing.
The contract also highlights Velesto’s continued efforts to expand its presence in the offshore drilling sector, leveraging its fleet of jack-up rigs to meet growing demand for reliable and efficient drilling solutions. With the deployment of NAGA 2, Velesto Energy aims to optimise the utilisation of its assets, enhance operational efficiency, and strengthen its financial performance over the contract period.
This award positions Velesto Energy to capture further opportunities in the regional offshore drilling market, reflecting both the company’s technical capabilities and its reputation as a trusted partner for major oil and gas operators.
