Velesto Energy has secured a new offshore drilling contract with Hibiscus Oil & Gas for a multi-well campaign offshore Malaysia in 2026.
The contract was awarded through Velesto Drilling, a wholly owned subsidiary of Velesto Energy. Under the agreement, the company will provide a jack-up rig through a charter arrangement using a third-party unit.
According to Velesto Energy, the award marks its first contract based on an asset-light jack-up rig model. The structure expands the company’s ability to support offshore clients without relying solely on its owned rig fleet.
The firm scope includes drilling services for eight plug and abandonment (P&A) wells and one exploration well. The contract also contains options for up to seven additional wells.
Operations are scheduled to begin in May 2026 in the PM3 CAA area offshore Malaysia. If the optional wells are exercised, the campaign will also extend to North Sabah.
Megat Zariman Abdul Rahim, President of Velesto Energy, said the contract demonstrates the company’s ability to support clients through different operating models while maintaining focus on safety, performance and operational execution.
He added that the company’s first asset-light arrangement increases flexibility in responding to market opportunities and client requirements while maintaining operational discipline and consistency.
The contract strengthens Velesto Energy’s order book and expands its operating capacity through a broader mix of contracting structures. The company added that the award also supports continued utilization.
The latest deal follows another recent offshore assignment for Velesto Energy. Two months earlier, the company secured work supporting Shell’s Sabah Shell Petroleum Company during deepwater operations offshore Sabah.
