According to Velesto Energy’s Bursa Malaysia announcement, Velesto Workover—a wholly-owned subsidiary of Velesto Malaysian Ventures, which in turn is a wholly-owned subsidiary of Velesto Energy—has received a Letter of Award from ExxonMobil Exploration and Production Malaysia for the provision of a hydraulic workover unit and services for its 2023/2024 workover and plug and abandonment (P&A) program.
While the financial details were not specified, Velesto did explain that the value of this contract with no guarantee of call-offs will be based upon the agreed rates and work order, if any, issued by ExxonMobil within the contract term.
Furthermore, the Velesto GAIT 6 unit has been assigned to perform workover, plugging and abandonment work for ExxonMobil during the two-year contract. The start date for this assignment is expected in 3Q 2023.
The 2014-built Velesto GAIT 6 is a hydraulic workover unit with maximum pulling and snubbing capacities of 460,000 pounds and 225,000 pounds, respectively. It can rig up on offshore platforms to perform well workover, plugging and abandonment activities.
Velesto secured multiple new deals for its rigs over the past few months. In May 2023, the firm’s rigs got hired by Petronas Carigali for operations in Malaysia. The deal with the Malaysian energy giant has an estimated combined contract value of $128 million.
The following month, Velesto secured work with an estimated combined contract value of $10.9 million for a rig with Vestigo Petroleum, a subsidiary of Malaysia’s Petronas Carigali. Recently, the company confirmed a deal with Jadestone Energy, which comes with an estimated combined contract value of $6.1 million.
