Velesto Energy Bhd, an oil and gas services provider, is set to sell its jack-up drilling rig, Naga 3, for US$63 million (RM258.4 million) as part of its fleet optimisation strategy. The sale is expected to generate a pro forma gain of RM17.1 million after factoring in estimated expenses, contingencies, and tax.
The disposal will be carried out by Velesto Drilling 3 (L) Ltd, an indirect wholly owned subsidiary of Velesto, to PT Indonesia Drilling Energy, according to a Bursa Malaysia filing on Tuesday (Dec 16). The payment will be made fully in cash, with a 10% deposit due upon signing of the sale and purchase agreement and the remaining 90% payable upon completion.
As of Dec 31, 2024, Naga 3 had a net book value of US$57 million (RM233.9 million), including inventories. The rig was originally built in 2010 at a cost of US$179 million, with an additional US$21.1 million invested between 2011 and 2024.
Velesto plans to allocate RM251.1 million of the proceeds to shareholder distributions, general corporate purposes, and working capital, with utilisation expected by December 2026. The remaining RM7.3 million will cover disposal-related expenses, expected by June 2026.
Currently undergoing its special periodic survey—a detailed five-year inspection—Naga 3 is also receiving necessary repairs, which are scheduled for completion in the first quarter of 2026. The disposal, pending required approvals, is targeted for completion by the end of the first half of 2026.
Velesto president Megat Zariman Abdul Rahim said the divestment reflects the company’s focus on higher-specification rigs, aligning resources with its core strengths in the drilling sector. “Adopting a more asset-light approach boosts operational flexibility, strengthens our balance sheet, and ensures capital is deployed where it delivers the most value,” he added.
Velesto shares closed down one sen, or 3.51%, at 27.5 sen on Tuesday, giving the company a market capitalisation of RM2.26 billion.
