US company Hess has extended a contract for a jack-up drilling rig operating off Malaysia owned by local company Velesto Energy.

Velesto confirmed it had received an 18-month contract extension from Hess for the jack-up Naga-8, with options for further extensions.

The renewal period will commence in the second quarter and is valued at roughly $38 million.

Naga-8 is an independent-leg cantilever jack-up rig which is capable of operating in water depths of 400 feet and drilling to a depth of 30,000 feet.