Velesto Energy Berhad has kicked off 2026 on a strong note, securing a long term drilling contract from PETRONAS Carigali Sdn. Bhd. for its NAGA 2 jack-up rig. The deal spans a firm period of five years, with operations already underway as of February 2026 and expected to run through to 2030.
For a company that operates in one of the more demanding corners of the energy sector, this kind of contract is no small thing. A five year commitment from one of the region's most prominent operators signals genuine confidence in Velesto's capabilities and track record. It also gives the Group something that every drilling company values deeply — visibility. Knowing where your assets will be deployed, and for how long, makes planning far more straightforward and keeps revenue streams steady even when market conditions shift.
Megat Zariman Abdul Rahim, President of Velesto, said, "The award marks an important milestone for Velesto and an excellent start to 2026. The five-year engagement for NAGA 2 reflects our continued progress in maximising the utilisation of our core assets while strengthening earnings visibility. We appreciate the trust placed in Velesto and remain committed to delivering safe operations and consistent performance throughout the contract period."
The rig at the heart of this contract is no ordinary piece of kit. NAGA 2 is an independent leg cantilever jack-up drilling rig built to handle serious operational demands. It carries a drilling depth capability of 30,000 feet and is rated for operating water depths of up to 350 feet, making it well suited for the offshore environments found across Malaysia and the broader Southeast Asian region.
This latest award fits neatly into Velesto's wider strategy of disciplined asset management and focused execution across its core operating markets. With NAGA 2 now firmly committed for the next five years, the Group looks to be in a solid position heading into the rest of the decade.
