Velesto’s NAGA 3 Starts Malaysian Drilling Contract

Velesto Energy’s NAGA 3 jack-up rig began operations in Malaysia in November 2026 under a Petronas Carigali contract covering one firm well and an option for a second.

The award came through Velesto Drilling, Velesto’s wholly owned subsidiary. It gives NAGA 3 a committed assignment in Malaysia without making the second well a firm part of the program.

What does the Petronas award commit?

Petronas Carigali has contracted NAGA 3 for one firm well, with an option for a second well under the contract Velesto announced. The option preserves a possible extension of the rig’s contract; it does not guarantee another drilling slot.

“This contract adds to the Group's contracted drilling activity in Malaysia and provides near-term revenue visibility. It supports utilization of NAGA 3 and generates commercial returns from the asset,” said Megat Zariman Abdul Rahim, Velesto’s president.

His comment places the award among Velesto’s contracted Malaysian activity and ties the near-term effect to keeping NAGA 3 working. The company did not quantify the revenue, and it gave no indication when or whether the option would be exercised.

The commitment is one firm well, with a second well still open to further agreement.

What can NAGA 3 drill?

Velesto describes NAGA 3 as an independent-leg cantilever jack-up drilling rig capable of drilling to 30,000 feet and operating in water depths of up to 350 feet.

Those numbers describe what the rig can handle. Velesto did not specify the Petronas well’s planned depth, water depth or location, so the figures do not describe the assignment itself.

Velesto operates six wholly owned jack-up drilling rigs and has conducted drilling operations across Southeast Asia, including:

• Malaysia
• Indonesia
• Vietnam
• the Philippines
• Thailand

The Petronas contract adds a customer assignment to a fleet with an established operating history in the region.

The rig can handle the commitment, but the Petronas well’s depth, water depth and location remain undisclosed.

What does Velesto expect financially?

Velesto expects the contract to contribute positively to earnings and net assets over its duration. That is the company’s expectation, not a quantified forecast for either measure.

The contract’s financial value and duration remain undisclosed. The release provides no basis for calculating revenue per well, the length of the firm commitment or the margin on the job.

The option also limits how much forward work can be counted. One well is firm; a second would require exercise of the option before it becomes part of contracted activity.

Velesto has signaled a positive contribution, but it has not put a value, duration or margin on the award.

What should operators watch?

The next watch item is any exercise of the second-well option. A confirmed second well would extend NAGA 3’s contracted work; an option alone does not provide that visibility.

Operations under the award began in November 2026 through Velesto Drilling. Any later update on the second well, contract value or duration would give service providers and customers a clearer view of rig utilization and earnings contribution.

Until then, the firm commitment remains one well in Malaysia, and the second well remains an option rather than committed work.

The second-well option is the next checkpoint, while the contract’s economics remain undisclosed.