Velesto Energy Bhd secured a contract from Petronas Carigali Sdn Bhd worth $128 million (RM569.6 million) through its wholly owned subsidiary Velesto Drilling Sdn Bhd (VED).
The good news was announced by VED in its filing to the Stock Exchange, saying it will provide three jack-up drilling rigs named Naga 3, Naga 4 and Naga 6.
The project is expected to start in the third quarter of 2023.
In addition to that, VED will also be involved in the provision of three premium independent-leg cantilever jack-up drilling rigs that have a drilling depth capability of 30,000 feet and operating water depths rated between 350 feet and 400 feet.
With the procurement of this contract, Velesto expects it to contribute to VED's income and net assets in the financial periods ending 31 December 2023 and 2024.
Apart from offshore drilling services and operations, VED also provides other engineering services for oil and gas exploration, as well as development and production, domestically and abroad.
Meanwhile, CGD-CIMB Securities maintained an 'Add' rating for Velesto at 23 sen with a higher target price of 26 sen from 23 sen previously.
As of 12.30 today, Velesto shares were trading at 24 sen with a market capitalization of RM1.93 billion.
