Searah, the joint venture between Eni and Petronas combining their oil and gas operations across Indonesia and Malaysia, has agreed to terminate a jackup drilling contract with Velesto Drilling under a without-cause provision, freeing the Naga 8 rig to seek new work in the Southeast Asian market.
Velesto confirmed it has terminated the contract for the provision of Naga 8 jackup drilling rig services for PC Ketapang II, PC North Madura II and Petronas North Ketapang. The client agreed to the termination under the without-cause provision of the contract, which had originally been awarded in May 2025.
Before the contract was ended, Velesto had completed Phase 1 of the project, covering three of the 12 commitment wells over approximately eight months. The company said the termination is not expected to have a material adverse financial impact on earnings and net assets for the year ending 31 December 2026, given the Jadestone contract keeping Naga 8 deployed in the near term and its active pursuit of new work.
Velesto will now market the Naga 8 for alternative deployments, stating it is seeking new contracts with improved commercial terms, an optimised drilling sequence and better overall commercial prospects.
The Naga 8 is a 2015-built jackup currently working for Jadestone Energy on the East Belumut Phase 9 infill drilling programme offshore Peninsular Malaysia under a $16.49 million contract due to end this month, keeping the rig active through the transition period.
The cancellation comes as Searah develops its broader fleet and vessel strategy across its growing Southeast Asian portfolio. The Eni Muara Bakau subsidiary has separately exercised an option for the SSV Catarina semi-submersible owned by Ventura Offshore to drill a fourth well and top hole in Indonesia, keeping the 2012-built rig active into the fourth quarter of 2026 and adding approximately $25.1 million to its backlog.
Searah was formally established on 8 June 2026 as a 50/50 joint venture between Eni and Petronas, creating Southeast Asia’s largest independent integrated energy company. The venture brings together 19 gas-producing and development assets across Indonesia and Malaysia, starting with production exceeding 300,000 barrels of oil equivalent per day and targeting more than 500,000 boepd within three years. The $20 billion five-year investment programme includes four sanctioned deepwater gas projects in Indonesia targeting first production in 2028.
The name Searah is derived from a word in both Malaysian and Indonesian languages meaning alignment or shared direction, reflecting the intent behind combining two complementary portfolios in one of Asia’s most active upstream regions.
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