Velesto Energy Secures Landmark Asset-Light Contract with Hibiscus Petroleum

Malaysian rig owner Velesto Energy has won a significant contract from independent oil and gas company Hibiscus Petroleum for its 2026 drilling campaign offshore Malaysia. This agreement is notable as it marks Velesto's first "asset-light" contract, where the company will utilize a third-party jack-up rig under a charter arrangement instead of deploying a unit from its own fleet.

Scope of the Drilling Programme

The firm work scope of Hibiscus' 2026 drilling programme includes eight plug and abandonment wells and one exploration well. The contract, awarded to Velesto Energy subsidiary Velesto Drilling, also includes options for up to seven additional wells. The firm wells are located on Block PM3 CAA in the Malaysia-Vietnam commercial arrangement area, with drilling operations scheduled to commence this month. If the options are exercised, the jack-up rig—whose name and owner were not disclosed—will also drill on the North Sabah production sharing contract offshore Malaysia.

Strategic Implications and Flexibility

Megat Zariman Abdul Rahim, Velesto Energy president, commented that this first asset-light arrangement broadens how the company can execute projects while maintaining the same discipline and consistency in operations. He noted that the approach provides greater flexibility in responding to market opportunities and supporting clients' needs. Although the value of the Hibiscus contract was not disclosed, Velesto confirmed that the award strengthens its order book and reflects the group's ability to expand its operating capacity through a broader mix of contracting structures, while supporting continued utilisation.