Velesto bids goodbye to 2010-built jack-up rig

December 16, 2025, by Melisa Cavcic

Malaysia’s Velesto Energy has struck a deal to divest a 15-year-old jack-up rig for a total cash consideration of $63 million (equivalent to RM 258.4 million).

Thanks to this sale and purchase agreement (SPA), PT Indonesia Drilling Energy will buy Velesto’s 2010-built NAGA 3 jack-up drilling rig. This sale is in line with the company’s ongoing fleet optimization, with a focus on more technically competitive rigs consistent with its position as a premium rig operator.

The disposal is expected to yield an estimated gain of approximately RM1.4 million (about $342,440). The proposed disposal is expected to be completed by end of first half of 2026, which is anticipated to allow Velesto enhanced agility in managing its fleet through a broader mix of ownership and leasing structures, while prioritising rigs that meet current market requirements.

Megat Zariman Abdul Rahim, President of Velesto, commented: “This divestment sharpens our focus on premium rigs that define Velesto’s competitive advantage.

“Moving toward a more asset-light model enhances our operational agility, strengthens our balance sheet, and ensures we deploy capital where it creates the greatest value. The proceeds will reinforce our core drilling business and support returns to our shareholders.”

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Following the transfer to PT Indonesia Drilling Energy, NAGA 3 is slated for deployment in Malaysian waters through TEXCAL Energy’s subsidiary, AFED TEXCAL Energy Ventures, to support its exploration and production operation.

This move is perceived to underscore the continued demand for reliable drilling assets in Malaysia and the regional energy sector. The Malaysian player recently took steps to curb development costs for operators by launching an integrated offshore model with ICON Engineering.

The rig sale comes shortly after Velesto teamed up with the Department of Occupational Safety and Health (DOSH) to bring a new project into play to strengthen safety readiness across the oil and gas industry’s contractor and vendor ecosystem.