Velesto has terminated the proposed disposal of the Naga 3 jack-up rig, leaving the unit under the company’s ownership.

The sale and purchase agreement was signed on 14 December 2025 between PT Indonesia Drilling Energy and Velesto Drilling 3, a wholly owned subsidiary of Velesto Rig Assets. Velesto Rig Assets is wholly owned by Velesto.

The company’s board said the agreement was terminated with effect from 7 July 2026. Velesto Drilling 3 issued a termination notice to the buyer on 30 June 2026.

The proposed disposal was expected to generate an estimated gain of approximately RM1.4 million, or about $342,440.

After completion of the planned sale, Naga 3 was scheduled for deployment in Malaysian waters to support exploration and production operations by AFED TEXCAL Energy Ventures, a subsidiary of TEXCAL Energy.

Following the termination, Naga 3 remains an asset of Velesto. The company said the termination is not expected to have a material effect on its earnings or net assets for the financial year ending 31 December 2026.

Velesto recently secured several assignments, including an agreement with Hibiscus Oil & Gas. The contract was described as the company’s first to use a third-party jack-up rig under a charter arrangement.