Velesto Energy bags RM101m job from Shell
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Velesto Energy Bhd’s (formerly known as UMW Oil & Gas Corp Bhd) wholly owned subsidiary Velesto Drilling Sdn Bhd (VED) was awarded a US$25 million (RM101 million) contract from Sarawak Shell Bhd/Sabah Shell Petroleum Company Ltd for the provision of jack up drilling rig services.
Velesto will assign its Naga 7 for the contract, which will go on from Aug 1, 2018 to Sept 30, 2018.
The provision of the services is expected to contribute positively to the group’s earnings and net assets during the contract period for the financial period ending Dec 31, 2018.
Velesto shares were unchanged at 30 sen on 21.64 million shares done.
Questions & Answers
Q.Which specific drilling rig will Velesto Energy use for this contract?
Which specific drilling rig will Velesto Energy use for this contract?
Velesto Energy will assign its Naga 7 rig for the services required by Sarawak Shell Bhd and Sabah Shell Petroleum Company Ltd. This rig will operate for the full duration of the contract.
Q.How long is the contract for the jack-up drilling rig services expected to last?
How long is the contract for the jack-up drilling rig services expected to last?
The contract is scheduled to run for two months, starting from August 1, 2018, and concluding on September 30, 2018. This covers the period for which services will be provided.
Q.What is the total value of the contract awarded by Shell to Velesto Energy?
What is the total value of the contract awarded by Shell to Velesto Energy?
The contract awarded to Velesto Energy is valued at US$25 million. In Malaysian Ringgit, this equates to RM101 million, as stated in the announcement regarding the drilling rig services.
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