Velesto Secures New Petronas Carigali Contract for Naga 3 Jackup After Sale Collapse

Malaysian offshore drilling contractor Velesto Energy has secured new work for its Naga 3 jackup rig with Petronas Carigali, providing a timely boost for the unit just months after a planned divestment fell through, according to Splash247. The contract, awarded through Velesto's subsidiary Velesto Drilling, covers one firm well with an option for additional scope. The deal comes after a proposed $63 million sale of the Naga 3 to an Indonesian buyer collapsed, leaving the company needing to reactivate its commercial strategy for the asset. ## Turning Adversity into Opportunity The failed sale had raised questions about the near-term utilisation of the rig, but the swift award from Petronas Carigali — the exploration and production arm of Malaysia's national oil company — underscores continued demand for jackup capacity in the region's upstream sector. For Velesto, retaining the Naga 3 and putting it back to work with one of Malaysia's most significant drilling clients represents a pragmatic pivot. Rather than pursuing further divestment at what may have been an unfavourable valuation, the company is leveraging the rig's operational readiness to generate near-term revenue. ## Jackup Market Context The Southeast Asian jackup market has remained relatively resilient, supported by sustained upstream investment from national oil companies including Petronas. Day rates for modern jackup units in the region have firmed over the past two years as operators seek to maintain production levels and advance development drilling programmes. Velesto operates a fleet of jackup rigs primarily serving the Malaysian continental shelf, and its relationship with Petronas Carigali as a key client provides a degree of revenue stability that many smaller regional drillers lack. ## Outlook While a single-well contract represents a modest near-term commitment, the option clause attached to the award leaves room for scope expansion depending on operational performance and Petronas Carigali's evolving drilling schedule. Analysts will be watching whether Velesto pursues a renewed sale process for the Naga 3 or opts to retain the asset as part of a longer-term fleet strategy. *Source: Splash247*