Velesto Energy Bhd (VEB) announced that its subsidiary Velesto Drilling Sdn Bhd has received a Letter of Award from Hess Exploration and Production Malaysia BV for the Provision of Integrated Rig, Drilling and Completion (I-RDC) services for Hess’ North Malay Basin Full Field Development Campaign.
The value of the contract is estimated to be US$135 million (RM640 million) and will run from 2022 till 2024.
According to the VEB, the Group will assign its jack-up rig NAGA 5 for this Contract. The Contract is to provide I-RDC services covering 14 wells with an expected commencement date in Q4-2022.
NAGA 5 is a premium independent-leg cantilever jack-up drilling rig that has a drilling depth capability of 30,000 feet and has a rated operating water depth of 400 feet.
Hess Exploration and Production Malaysia BV is a subsidiary of US based oil and gas operator, Hess Corporation. Hess Exploration and Production Malaysia BV operates Block PM302, located 290 kilometres offshore Peninsular Malaysia with 50 percent participating interest while Petronas Carigali Sdn Bhd holds the remaining 50 percent.
Recently, Hess announced first gas production from North Malay Basin Phase 3 Project that adds another 100 million cubic feet per day (MMscfd) of gas supply from Block PM302, bringing the total production to 400 MMscfd.
