Velesto’s cancelled rig sale highlights oil volatility

OIL and gas (O&G) drilling services provider Velesto Energy Bhd’s failed sale of its 16-year-old jack-up rig Naga 3 highlights the volatile conditions that continues to buffet the offshore and maritime industries, with conflict in the Middle East disrupting medium- to longer-term plans.

While the sale to an Indonesian O&G services firm was cancelled because the transaction was not completed by the due date of June 30, 2026, uncertainty over crude oil prices stemming from renewed hostilities between the United States and Iran, along with the rupiah’s weakness, may also have played a role, as the deal was denominated in US dollars.