Naga 8 contract ends early for Velesto in Indonesia

Velesto Energy and its clients terminated a jack-up drilling rig contract for the Naga 8 rig offshore Indonesia, effective 7 July 2026. Velesto and PC Ketapang II, PC North Madura II and Petronas North Ketapang ended the contract without cause under its termination provisions.

The contract, awarded in May 2025, had a firm term of four years covering 12 committed wells. Before termination, Velesto completed the first phase of the program, drilling three of the 12 wells over approximately eight months.

Naga 8 remains deployed under a separate contract with Jadestone Energy for the East Belumut Phase 9 infill drilling project offshore Peninsular Malaysia, running from March to July 2026. Velesto said it is now marketing Naga 8 for new opportunities and does not expect the termination to materially affect its FY2026 earnings or net assets.