In the group’s filing with Bursa, VED announced that the contract was for the provision of three jack-up drilling rigs – named Naga 3, Naga 4, and Naga 6 – which are expected to commence in the third quarter of 2023.

Under the contract, VED will provide three premium independent-leg cantilever jack-up drilling rigs with a drilling depth capability of 30,000 feet and rated operating water depths of between 350 feet and 400 feet.

Velesto also said that the provision of these services are expected to contribute to VED’s earnings and net assets during the respective campaign period for the financial period ending Dec 31, 2023 and 2024.

On Feb 1, VED had also received a letter of award from Roc Oil (Sarawak) Sdn Bhd for a contract worth US$14 million (RM62.2 million) for the same services.

Apart from offshore drilling services and operations, VED provides other engineering services for oil and gas exploration, and development and production, both locally and abroad.

In its fourth quarter ended Dec 31, 2022, Velesto recorded a net loss of RM26 million compared to a net profit of RM5.43 million a year ago, attributed to higher operating expenses, finance costs, and taxation.

As at 12.15pm, Velesto’s share price was down 4% or 1 sen to 24 sen, giving it a market capitalisation of RM1.93 billion.