Malaysia’s Velesto Energy, owner of premium jack-up rigs, has unveiled the termination of a contract for a jack-up rig currently working in Malaysian waters, Southeast Asia.
Velesto has agreed to terminate a contract without cause on July 7, 2026, following a confirmation from May 2025 in relation to a letter of award (LoA) for the provision of jack-up drilling rig services for PC Ketapang II, PC North Madura II, and Petronas North Ketapang.
The company’s Naga 8 rig is currently deployed under a separate assignment with Jadestone for the East Belumut Phase 9 infill drilling project, offshore Peninsular Malaysia, valued at around $16.49 million (about RM 64 million) and running from March 2026 to July 2026.
Before the contract for the provision of the Naga 8 jack-up drilling rig was terminated, the unit completed Phase 1 of the project, comprising three of the 12 commitment wells over approximately eight months.
Velesto claims that this termination provides it with the opportunity to actively market the rig for alternative deployment opportunities. As a result, the firm is working to secure new contracts with improved commercial terms, optimized drilling sequence and enhanced overall commercial prospects.
The company emphasizes that this termination is not expected to have a material adverse financial impact on earnings and net assets for the financial period ending on December 31, 2026, after taking into consideration the Jadestone contract, which keeps the rig deployed, and the firm’s active pursuit of upcoming prospects.
This comes shortly after Velesto announced the termination of a sale and purchase agreement (SPA) for the disposal of the Naga 3 jack-up rig inked on December 14, 2025, with PT Indonesia Drilling Energy.
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