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Velesto wins integrated rig, drilling and completion contract from Hess

Velesto Energy was awarded a contract today from Hess E&P Malaysia for the provision of integrated rig, drilling and completion (i-RDC) services for Hess’ 2022 to 2024 North Malay Basin full field development campaign.

Hess is a production arrangement contractor of Petronas, and the contract includes the provision of Velesto’s NAGA 5 unit, with an estimated contract value of $135 million.

“The i-RDC services contract is the first jackup rig drilling contract to be awarded through an i-RDC arrangement in Malaysia,” said Megat Zariman Abdul Rahim, President of Velesto. “This is a step change in Velesto’s business offering as it demonstrates our unique value proposition that paves the way for closer collaboration among the client, lead contractor and services partners. We are partnering with Halliburton as our technical partner to provide these services to drill and complete 14 offshore wells. As our service portfolio expands through this strategic partnership, we are well-positioned to secure more potential opportunities to cater to the needs of our clients.”

i-RDC is a concept in which integration of drilling rig services, equipment and, in some cases, procurement of materials for drilling and completion services are covered under a single contract between the operator or oil company and one service company as an i-RDC contractor.

Velesto is a Malaysia-based multinational drilling and workover provider with a fleet of six premium jackup drilling rigs and four hydraulic workover units.

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