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KUALA LUMPUR: Velesto Energy Bhd (VEB) has secured a contract worth RM60mil from Petronas Carigali Sdn Bhd for the provision of plug and abandonment integrated services for Tembungo A & B oilfields.

In a filing with Bursa Malaysia, VEB said Velesto Workover Sdn Bhd (VWO), a wholly-owned subsidiary of Velesto Malaysian Ventures Sdn Bhd (VMV), which in turn is a wholly-owned subsidiary of VEB secured the contract from Petronas Carigali.

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The duration of the contract is for 21 months for Tembungo A, tentatively from May 2022 until January 2024, with a 12 months extension option.

The contract duration for Tembungo B is tentatively from January 2024 until December 2024.

VEB said the contract is expected to contribute positively towards the earnings and net assets of the VEB group in the financial year the works are performed by VWO during the duration of the campaign.