PETALING JAYA: Velesto Energy Bhd, through its subsidiary Velesto Workover Sdn Bhd, has received a letter of award from ExxonMobil Exploration and Production Malaysia Inc (EMEPMI) for provision of one hydraulic workover unit and services.

       The contract is for one year starting the third quarter of this year until completion of EMEPMI’s selected wells programme.

       “The value of this enabling contract with no guarantee of call-offs shall be based upon the agreed rates and work order, if any, issued by EMEPMI within the contract term,” said the company in a filing with Bursa Malaysia.

       For the contract, Velesto said it would assign Velesto Gait six, a hydraulic workover unit for rigging up on offshore platforms to perform well workover, plugging and abandonment operations.

       The Contract is expected to contribute to the earnings and net assets of Velesto for the financial period ending December 31, 2022 and 2023.