Malaysia’s offshore oil and gas sector continues to record active development, with Velesto Energy Berhad securing an approximately US$51 million contract to support Chevron Malaysia’s upcoming drilling campaign in the North Malay Basin.
The contract was awarded to Velesto’s wholly owned subsidiary, Velesto Drilling Sdn. Bhd., by Hess Exploration and Production Malaysia B.V., a wholly owned subsidiary of Chevron.
Under the agreement, Velesto will provide Integrated Rig, Drilling and Completion (i-RDC) services for Chevron Malaysia’s 2026–2028 North Malay Basin Full Field Development Campaign.
NAGA 8 to Support the 2026–2028 Campaign
Velesto’s NAGA 8 jack-up drilling rig will support the campaign, which is scheduled to commence in August 2026.
The award marks Velesto’s second i-RDC contract supporting the North Malay Basin development programme. It also strengthens the company’s continued involvement in offshore drilling and completion activities in Malaysia.
Located offshore Peninsular Malaysia, the North Malay Basin is an established gas-producing area and remains an important part of the country’s offshore energy landscape.
Growing Demand for Integrated Offshore Services
The contract reflects the continued demand for integrated drilling and completion capabilities in Malaysia’s upstream sector.
An i-RDC approach brings together key activities such as rig operations, drilling and well completion under an integrated service scope. This can improve coordination across different stages of well construction and support more efficient project execution.
For offshore development campaigns, effective integration is particularly important. Operations require close coordination between people, equipment, technical disciplines and safety systems throughout the well delivery process.
What This Means for Industry Competency
Developments such as the North Malay Basin campaign also highlight the level of technical capability required to support modern offshore operations.
While advanced rigs, equipment and technology remain essential, successful project execution also depends on the knowledge and competency of the professionals involved.
Areas such as drilling, well completion, well integrity, production, safety and operational planning continue to play an important role in ensuring offshore activities are carried out safely and efficiently.
At SEMARAK Training, we see continued industry activity as a strong reminder of why competency development must progress alongside operational and technological advancement.
Through specialised technical training programmes, SEMARAK Training supports energy professionals and organisations in strengthening the knowledge and practical capabilities needed to respond to evolving industry requirements.
As Malaysia’s oil and gas sector continues to develop, investing in a capable and technically competent workforce will remain an important part of sustaining safe, reliable and efficient operations.
Source: BusinessToday Malaysia
