Velesto Energy is taking a quiet but important turn in its business model after securing a drilling contract from Hibiscus Oil & Gas Malaysia using a third-party jackup rig its first real step into an asset-light operating approach.
The contract goes through Velesto Drilling, its drilling arm, and covers Hibiscus’ offshore campaign scheduled for 2026 in Malaysian waters.
Instead of relying on its own rigs, Velesto will source and provide a jackup unit via a charter arrangement. It’s a shift in how the company, long known as one of Southeast Asia’s biggest jackup rig owners and operators, can now execute projects.
The scope of work includes eight plug and abandonment wells plus one exploration well, with optional work of up to seven additional wells depending on how the campaign develops.
Operations are set to kick off this month in the PM3 Commercial Arrangement Area offshore Malaysia, with the possibility of extending into the North Sabah region if extra drilling is approved.
Velesto chief executive Megat Zariman Abdul Rahim said the contract shows the company can work in different ways for its clients without changing its operational standards.
He stressed that safety, performance and execution discipline remain unchanged, even as the company opens the door to more flexible delivery models.
According to him, this first asset-light arrangement simply widens how Velesto can participate in projects while keeping the same operational consistency it is known for.
Velesto still operates a fleet of six owned jackup rigs and two hydraulic workover units, but this move suggests the company is starting to add more flexibility on top of its traditional rig-owning model.
