Velesto terminates Naga 8 drilling rig contract


KUALA LUMPUR: Velesto Energy Bhd has terminated a contract for the provision of its Naga 8 jack-up drilling rig services for PC Ketapang II Ltd, PC North Madura II Ltd and PETRONAS North Ketapang Sdn Bhd.

In a filing with Bursa Malaysia, the oil and gas services provider said Velesto Drilling Sdn Bhd, a wholly-owned subsidiary of Velesto Malaysian Ventures Sdn Bhd, which, in turn, is a wholly owned subsidiary of Velesto, and the client has agreed to terminate the contract without cause on July 7, 2026.

The contract, awarded in May 2025, was terminated under the contract’s termination without cause provision.

Prior to the termination, Velesto had completed Phase 1 of the project, comprising three of the 12 committed wells over approximately eight months.

“The termination provides the group with the opportunity to actively market the Naga 8 rig for alternative deployment opportunities.

“The group is currently undertaking efforts to secure new contracts with improved commercial terms, optimised drilling sequence and enhanced overall commercial prospects,” Velesto further said.

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Velesto , energy , drilling , oil , rig , charter , Naga 8

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