Chevron subsidiary Hess Exploration and Production Malaysia has awarded Velesto Drilling a $51-million contract for integrated drilling and completion services, with the NAGA 8 jackup set to support the 2026-2028 North Malay Basin Full Field Development campaign.
Why this news matters:
- The award signals continued investment in Malaysia’s offshore gas sector, where operators are pursuing development drilling to maintain production and strengthen domestic gas supply.
- Integrated drilling contracts are becoming increasingly common as operators seek to streamline offshore well construction and improve project efficiency.
Hess Exploration and Production Malaysia has contracted Velesto Energy Berhad subsidiary Velesto Drilling for integrated rig, drilling and completion (i-RDC) services for the 2026-2028 North Malay Basin Full Field Development campaign.
Hess Exploration and Production Malaysia, a Chevron subsidiary following Chevron’s acquisition of Hess, operates multiple gas-producing assets in offshore Malaysia.
The North Malay Basin gas fields are located offshore Peninsular Malaysia and form part of a major gas supply hub feeding domestic industry and regional energy markets. The area has been the focus of phased development drilling campaigns designed to sustain production and maximize recovery from mature and producing fields.
It is Velesto’s second i-RDC contract for the North Malay Basin development. Under an i-RDC model, the contractor provides a bundled package of rig, drilling and well-completion services intended to improve operational efficiency and reduce project interfaces.
The award extends Velesto’s presence in one of Malaysia’s most active offshore drilling markets and represents a continuation of the company’s role in Chevron-operated North Malay Basin development programs.
The company will allocate the NAGA 8 jackup rig for the $51-milllion award, with the program due to start next month. The rig is currently completing work for Jadestone Energy (Malaysia) for the East Belumut Phase 9 infill drilling project.
Earlier this week, Velesto Drilling and PETRONAS North Ketapang agreed to terminate a contract for the NAGA 8 jackup rig offshore Indonesia.
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