1. INTRODUCTION
The Board of Directors of Velesto Energy Berhad ("VEB") is pleased to announce that Velesto Drilling Sdn. Bhd. ("VED"), a wholly-owned subsidiary of Velesto Malaysian Ventures Sdn. Bhd. ("VMV"), which in turn is a wholly-owned subsidiary of VEB (collectively referred to as "VEB Group"), has received a Letter of Award from Hess Exploration And Production Malaysia B.V., a wholly-owned subsidiary of Chevron (hereinafter referred to as "Chevron Malaysia") for the Provision of Integrated Rig, Drilling and Completion ("i-RDC") Services for Chevron Malaysia's 2026 to 2028 North Malay Basin Full Field Development Campaign ("Contract").
2. CONTRACT DETAILS
The Contract is for the Provision of i-RDC Services, whereby VEB Group will assign its NAGA 8 through VED for this Contract. The Contract is for Chevron Malaysia's 2026 - 2028 North Malay Basin drilling campaign commencing from August 2026. The estimated Contract value attributable to the VEB Group is approximately USD 51 million.
NAGA 8 is a premium independent-leg cantilever jack-up drilling rig that has a drilling depth capability of 30,000 feet and has a rated operating water depth of 400 feet.
3. INFORMATION ON PARTIES
3.1 Information on VED
VED was incorporated in Malaysia under the Companies Act, 1965 on 29 July 2003 and is deemed to be registered under the Companies Act 2016. VED is principally involved in the offshore drilling business and operations and other engineering services for oil and gas exploration, development, and production in Malaysia and overseas.
3.2 Information on Chevron Malaysia
Chevron Malaysia was incorporated in the Netherlands and registered as a foreign branch in Malaysia under the laws of Malaysia on 22 September 1999. Chevron Malaysia is a significant operator in the development of Malaysia's natural gas resources and is one of the largest producers of Peninsular Malaysia's natural gas. Its parent company-Chevron Corporation is one of the world's leading integrated energy companies.
4. FINANCIAL EFFECTS
The provision of the above-mentioned services to be provided by VED is expected to contribute positively towards the earnings and net assets of VEB Group, for duration of the Contract, commencing from August 2026.
5. RISK ASSOCIATED WITH THE CONTRACT
The risks associated with the execution of the Contract are operational and execution risks, which will be mitigated and/or managed by VED, a company with a proven successful track record of undertaking drilling programmes.
7. DIRECTORS AND SUBSTANTIAL SHAREHOLDERS INTEREST
None of the Directors and/or the substantial shareholders of VEB Group and VED and/or persons connected with the Directors and/or substantial shareholders have any interest, direct or indirect in the above Contract.
8. STATEMENT BY DIRECTORS
The Board of Directors of VEB is of the opinion that the award of the Contract through VED is in the best interests of VEB Group.
This announcement is dated 22 July 2026.