OIL and gas (O&G) drilling services provider Velesto Energy Bhd
’s failed sale of its 16-year-old jack-up rig Naga 3 highlights the volatile conditions that continues to buffet the offshore and maritime industries, with conflict in the Middle East disrupting medium- to longer-term plans.
While the sale to an Indonesian O&G services firm was cancelled because the transaction was not completed by the due date of June 30, 2026, uncertainty over crude oil prices stemming from renewed hostilities between the United States and Iran, along with the rupiah’s weakness, may also have played a role, as the deal was denominated in US dollars.
Analysts viewed the failed sale as a temporary setback to the company’s asset-light transformation roadmap, under which it aims to focus on premium assets while gradually letting go of older, lower-specification rigs.
This strategy would also mitigate the risk of having obsolete assets as newer jack-up rigs enter the market.
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