Velesto Energy Bhd has terminated the sale of its jack-up drilling rig Velesto Naga 3 after the proposed disposal failed to reach completion within the agreed timeline, leaving the offshore asset under the group’s ownership.
The oil and gas services provider said its indirect wholly owned subsidiary, Velesto Drilling 3 (L) Ltd (VD3L), terminated the Sale and Purchase Agreement (SPA) with Indonesia-based PT Indonesia Drilling Energy, effective July 7, 2026.
The SPA, which was signed on Dec 14, 2025, involved the proposed disposal of the Velesto Naga 3 rig. Velesto had first announced the transaction to Bursa Malaysia on Dec 16, 2025.
According to the company, VD3L issued a notice of termination to the buyer on June 30 after completion of the transaction did not occur by the contractual deadline.
“As completion did not occur by the due date pursuant to the terms of the SPA, the agreement has been terminated,” Velesto said.
The company added that VD3L reserves its rights under the SPA following the termination.
As a result, Velesto Naga 3 remains part of the group’s asset portfolio.
Velesto said the termination is not expected to have a material impact on the group’s earnings or net assets for the financial year ending Dec 31, 2026.
The company did not disclose the financial value of the proposed disposal or provide further details on the reasons the transaction failed to reach completion.
