Velesto Energy Berhad, a Malaysia-based energy services company, confirmed the award of a 5-year drilling contract by PETRONAS Carigali Sdn. Bhd. , a subsidiary of the national oil company. The agreement includes the use of the NAGA 2 jack-up rig, which will be deployed in waters up to 350 feet deep starting in February 2026.
This multi-year commitment is projected as a driver for sustained utilization of strategic assets within the group, ensuring revenue visibility through 2030 and signaling stability in an increasingly competitive energy market.
Visibility and Operational Continuity
According to Megat Zariman Abdul Rahim, President of Velesto, the contract represents a positive start for 2026:
The five-year commitment for NAGA 2 reflects our progress in maximizing the utilization of our assets and reinforces earnings visibility.
Megat Zariman Abdul Rahim, President of Velesto.
Velesto has maintained a strategy focused on disciplined execution in its key markets, particularly in Southeast Asia. This award confirms PETRONAS’s confidence in the group’s operational capability and its focus on safety, efficiency, and reliability.
NAGA 2: Key Component of the Agreement
The NAGA 2 rig is a jack-up drilling unit with independent legs and a cantilever design. It can reach drilling depths of up to 30,000 feet, making it a high-value technical tool in demanding offshore operations.
Its participation in this new contract not only maximizes its utilization but also underscores its importance within Velesto’s operating fleet. The group continues to position itself as a reliable partner in offshore drilling for high-profile energy companies in the region.
Regional Impact and Long-Term Outlook
The contract strengthens the alliance between Velesto and PETRONAS, two key players in the Malaysian energy industry. In a context where operational stability and long-term planning are gaining ground, this type of contract provides predictability to the oil and gas value chain.
The continuous operation of NAGA 2 through 2031 also represents a positive indicator for investors, translating into a firm and sustained revenue stream in the coming years.
Source: Velesto Energy