(WO) — Velesto Energy has secured its first asset-light drilling contract through a third-party charter arrangement, winning a jackup rig contract from Hibiscus Oil & Gas Malaysia for an offshore drilling campaign in Malaysia.
The contract, awarded through Velesto Drilling Sdn Bhd, covers provision of a jackup rig for Hibiscus’ 2026 drilling program offshore Malaysia.
The firm scope includes drilling operations for eight plug-and-abandonment wells and one exploration well, with options for up to seven additional wells.
Operations are scheduled to begin in May across the PM3 Commercial Arrangement Area (CAA) offshore Malaysia, with optional work potentially extending into the North Sabah region.
Velesto said the award marks the company’s first use of a third-party rig under a charter arrangement as it expands its operational model and contracting flexibility.
“This award reflects Velesto’s ability to support our clients in different ways while maintaining the same focus on operational excellence, safety and performance,” said Megat Zariman Abdul Rahim, president of Velesto Energy Berhad.
He added that the asset-light structure broadens the company’s ability to respond to market opportunities while supporting client drilling requirements.
The contract further strengthens Velesto’s order book and expands the company’s offshore operating capacity in the Southeast Asian drilling market.
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