Malaysia-based offshore drilling contractor Velesto Energy has terminated the sale of its jack-up drilling rig NAGA 3 to Indonesia's PT Indonesia Drilling Energy after the transaction failed to complete within the agreed timeframe.
The company said its subsidiary, Velesto Drilling, issued a notice of termination to the buyer on June 30, 2026, with the sale and purchase agreement officially terminating on July 7, 2026.
Under the terms of the agreement, completion of the transaction did not occur by the contractual deadline.
The proposed sale, announced in December 2025, was valued at $63 million in cash and formed part of Velesto's fleet optimization strategy, which aimed to focus on more technically competitive drilling rigs while moving towards a more asset-light operating model.
Built in 2010, NAGA 3 was expected to be deployed in Malaysian waters following the acquisition by PT Indonesia Drilling Energy, supporting exploration and production activities through TEXCAL Energy subsidiary AFED TEXCAL Energy Ventures.
Following the termination of the agreement, NAGA 3 remains part of the Velesto's fleet.
The company said the termination is not expected to have a material impact on its earnings or net assets.