Malaysia’s Velesto Energy has moved into an asset-light operating model for the first time after securing a drilling contract from Hibiscus Oil & Gas Malaysia using a third-party jackup rig.
The contract was awarded to Velesto’s drilling arm, Velesto Drilling, and covers Hibiscus’ 2026 offshore drilling campaign in Malaysian waters.
Under the agreement, Velesto will provide a jackup drilling rig through a charter arrangement rather than deploying one of its own units, marking a strategic shift for Southeast Asia’s largest owner and operator of jackup rigs.
The campaign includes the drilling of eight plug and abandonment wells and one exploration well, with options for up to seven additional wells.
Operations are scheduled to begin this month in the PM3 Commercial Arrangement Area offshore Malaysia, while optional work could extend into the North Sabah region.
Velesto chief executive Megat Zariman Abdul Rahim said the contract showed the company could support customers through different operating models while maintaining the same operational standards.
“This award reflects Velesto’s ability to support our clients in different ways while maintaining the same focus on operational excellence, safety and performance,” he said.
“As our first asset-light arrangement, it broadens how we can execute projects while maintaining the same discipline and consistency in how we operate.”
Velesto currently operates a fleet of six wholly owned jackup drilling rigs and two hydraulic workover units.
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