Malaysia’s Velesto Energy, owner of premium jack-up rigs, has been hired to supply a jack-up rig for a drilling campaign off the coast of Malaysia, Southeast Asia.
A new contract, which Velesto Energy secured with Hibiscus Oil & Gas through its wholly-owned subsidiary, Velesto Drilling, is said to mark the firm’s first contract utilizing a third-party jack-up rig under a charter arrangement.
The deal enables the company to provide a jack-up rig for Hibiscus’ 2026 offshore drilling campaign in Malaysia, with the firm scope of work covering the drilling services of eight plug and abandonment (P&A) wells and one exploration well, alongside up to seven optional wells.
Megat Zariman Abdul Rahim , President of Velesto Energy, commented: “This award reflects Velesto’s ability to support our clients in different ways while maintaining the same focus on operational excellence, safety and performance.
“As our first asset-light arrangement, it broadens how we can execute projects while maintaining the same discipline and consistency in how we operate. This gives us greater flexibility in responding to market opportunities and supporting our clients’ needs.”
The Malaysian drilling player explains that operations are scheduled to begin in May 2026 across PM3 CAA and, if the optional wells are exercised, North Sabah , offshore Malaysia.
The latest contract award strengthens Velesto’s order book, enabling it to expand its operating capacity, while supporting continued utilization through a broader mix of contracting structures.
This deal comes two months after the Malaysian firm won an assignment to support Shell’s Sabah Shell Petroleum Company (SSPC) during deepwater activities off the coast of Sabah.