Velesto scraps proposed sale of 16-year-old jack-up rig

July 13, 2026, by Melisa Cavcic

Malaysia’s Velesto Energy, owner of premium jack-up rigs, has called off a deal to offload a 2010-built jack-up, retaining the rig in its fleet.

A sale and purchase agreement (SPA) for the proposed disposal of the Naga 3 jack-up rig has been terminated months after it was inked on December 14, 2025, between PT Indonesia Drilling Energy and Velesto Drilling 3 (VD3L), a wholly-owned subsidiary of Velesto Rig Assets, which in turn is a wholly-owned subsidiary of Velesto.

The disposal was expected to yield an estimated gain of approximately RM1.4 million (about $342,440). The rig was scheduled for deployment in Malaysian waters through TEXCAL Energy’s subsidiary, AFED TEXCAL Energy Ventures, to support its exploration and production operation upon the completion of the sale.

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The Malaysian player’s board of directors has confirmed that the SPA was terminated with effect from July 7, 2026, following the issuance of a notice of termination dated June 30, 2026, by VD3L to the buyer.

As a result, Naga 3 remains an asset of Velesto. The termination of the SPA is not expected to have a material effect on the company’s earnings and its net assets for the financial year ending December 31, 2026.

The Malaysian giant recently secured multiple assignments, including a deal with Hibiscus Oil & Gas, said to mark the firm’s first contract utilizing a third-party jack-up rig under a charter arrangement.