Malaysia's Velesto Energy, formerly known as UMW Oil & Gas, has been awarded contracts for the provision of four jack-up drilling rigs by Petronas Carigali.

The contract is for the provision of four drilling rigs – NAGA 2, NAGA 3, NAGA 5, and NAGA 6 – for Petronas Carigali's drilling program, Velesto said in a Bursa Malaysia filing on Monday.

The first three rigs will start their contract in April or May and the last one in June or July 2019.

The rigs have been hired for one year with an option of additional one plus one year extension for each of the contracts.

Estimated contract values for the rigs, for firm period only, are $25.4 million for NAGA 2 and for NAGA 3, each. For NAGA 5 the value of the contract is $26.2 million and for NAGA 6 the contract is worth $27.6 million.

All four rigs are premium independent-leg cantilever jack-ups with drilling depth capability of 30,000 feet. The first two rigs have a rated operating water depth of 350 feet and the other two 400 feet and 375 feet, respectively.

It is worth reminding that UMW Oil & Gas changed its name to Velesto Energy in May 2018.