PETRONAS, Velesto agree to early release of NAGA 8 jackup rig
Velesto Drilling and PETRONAS North Ketapang have agreed to terminate a contract for the NAGA 8 jackup rig offshore Indonesia.
Other parties to the agreement are PC Ketapang II Ltd. and PC North Madura II Ltd.
The termination relates to Article 23.2 (Termination Without Cause) of the contract with PETRONAS. Previously, Velesto Drilling had completed Phase 1 of this project, comprising three of 12 commitment wells.
NAGA 8 is currently working for Jadestone Energy on the East Belumut Phase 9 infill drilling program offshore Peninsular Malaysia, under a $16.49 million contract that is due to end this month.
Velesto will now market the rig for alternative deployments, adding that it is presently striving to secure new contracts with improved commercial terms and optimized drilling sequence.
Why this news matters:
- Early contract terminations can be an indicator of shifting operator priorities, capital allocation decisions or project timing changes, making them a closely watched signal for offshore drilling activity in a region.
- The availability of a modern jackup like NAGA 8 could create additional competition in the Southeast Asian rig market, where contractors continue to seek higher day rates and longer-term work as offshore development activity evolves.
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About the Author
Jeremy Beckman
Editor, Europe
Jeremy Beckman has been Editor Europe, Offshore since 1992. Prior to joining Offshore he was a freelance journalist for eight years, working for a variety of electronics, computing and scientific journals in the UK. He regularly writes news columns on trends and events both in the NW Europe offshore region and globally. He also writes features on developments and technology in exploration and production.