The service provider for the upstream oil and gas sector said its indirect wholly-owned unit, Velesto Workover Sdn Bhd, received a letter of award for the provision of a hydraulic workover unit and services for EMEPMI’s wells programme.

The group is assigning its Gait 6 unit to perform workover, plugging and abandonment, with a commencement date expected in the third quarter (Q3) of this year under the two-year contract, it said in a filing with Bursa Malaysia today.

The contract value will be based on the agreed rates and work order, if any, to be issued by EMEPMI within the contract term.

In a separate filing today, Velesto Energy announced its indirect wholly-owned unit Velesto Drilling Sdn Bhd has bagged a US$6.1 million (RM28.3 million) contract from Jadestone Energy (M) Pte Ltd for the provision of jack-up drilling rig Velesto Naga 2.

The contract involves drilling four firm wells under Jadestone Energy’s infill drilling programme at the East Belumut field, offshore Peninsular Malaysia. This is also expected to begin in Q3 2023.

Velesto Naga 2 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 350 feet.

The group said both contracts are expected to contribute to the group’s earnings and net assets for the financial years ending Dec 31, 2023 and 2024.

At 3.08pm, its shares were half-a-sen or 2.2% higher at 24 sen, valuing the group at RM1.93 billion.