Velesto brings jack-up rig’s SPS forward to prep it for new drilling opportunities

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Home Fossil Energy Velesto brings jack-up rig’s SPS forward to prep it for new drilling opportunities

November 29, 2024, by Melisa Cavcic

Malaysia-based Velesto Energy, a multinational provider of services for the upstream oil and gas industry through a fleet of six premium jack-up rigs and two hydraulic work-over units, has decided to advance a special periodic survey (SPS) for one of its rigs in anticipation of new drilling assignments.

NAGA 8 rig; Source: Velesto Energy

Following the suspension of the contract for the NAGA 8 rig due to early completion of the drilling program, which was set to keep the jack-up with Carigali Hess Operating Company up to 4Q 2025 , Velesto decided to use the situation as an opportunity to accelerate the SPS for the rig. This is a premium independent-leg cantilever jack-up rig with a drilling depth capability of 30,000 feet and a rated operating water depth of 400 feet.

The suspension of the contract with Carigali Hess will begin from February 10, 2025, or upon completion of demobilization, whichever is later, until further notice is received from this joint venture between PC JDA Limited, Hess Oil Company of Thailand, and Hess Oil Company of Thailand (JDA), which is engaged in gas production in Block A-18 of the joint development area (JDA) administered by the Malaysian-Thailand Joint Authority (MTJA).

While explaining that the SPS would position the rig for future opportunities in the offshore drilling market, the company underlined its commitment to pursue tender opportunities across domestic and regional markets, which are ongoing for NAGA 8 and other rigs within the fleet.

With the current tender of RM 5.4 billion (around $1.2 billion), Velesto remains confident in its ability to continue delivering value to stakeholders, thanks to its order book, which stands at RM 0.9 billion (about $202.5 million), supporting its financial visibility until 2026.

According to the rig owner, the NAGA 2, NAGA 4, and NAGA 6 jack-ups will remain contracted until the first quarter of 2026, ensuring continued operations and stability in the firm’s rig utilization.

Recently, Velesto confirmed the wrap-up of wreck removal , with recycling activities expected to follow suit shortly for one of its jack-up rigs that tilted and sank in 2021.

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