Velesto Energy has signed a new contract for the independent Naga 3 drilling rig with Petronas Carigali. This contract was concluded after the failure to sell this rig to an Indonesian company for $63 million and reflects the company's continued drilling activities in Malaysia.
Details of the New Contract
The new contract, awarded to Velesto's subsidiary, Velesto Drilling, includes drilling one well and an option for a second well. Drilling operations for this project will commence in November 2026. Velesto has not disclosed the financial details of this contract, including its value, daily rate, and duration.
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Background of the Naga 3 Rig
The Naga 3 rig, built in 2010, is an independent drilling rig capable of drilling to a depth of 30,000 feet in water depths of up to 350 feet. This rig returned to the company's fleet after Velesto decided in July 2026 to cancel its sale to PT Indonesia Drilling Energy for $63 million. The sale of this rig, announced in December 2025, was part of Velesto's strategy to focus on newer and higher-spec drilling units.
Malaysian analysts believe that retaining the Naga 3 rig could provide new revenue opportunities, provided that new drilling work is secured for it. Velesto has also signed a five-year drilling contract worth $157 million for the Naga 2 rig with Petronas Carigali this year.
Financial and Strategic Impacts
With a fleet of six drilling rigs and a confirmed order worth approximately 1.3 billion ringgit ($320 million) at the end of July, Velesto seems to be moving towards strengthening its drilling activities in Malaysia. This new contract not only helps diversify the company's service portfolio but also allows it to strengthen its relationship with Petronas Carigali.
Given the ongoing fluctuations in the oil and petrochemical markets, this new contract could assist Velesto in securing financial resources and improving its competitive position in the drilling market.
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