Velesto secures five-year drilling contract for NAGA 2 jack-up rig with Petronas

Velesto, a Malaysian oil and gas services firm, has secured a five-year drilling contract from national oil company Petronas for its NAGA 2 jack-up rig. This supply agreement, announced in March 2026 for drilling activities that commenced in February 2026, represents a significant long-term commitment. For Velesto, this deal ensures stable revenue and high utilization for a key asset in its fleet over an extended period, bolstering its operational outlook and financial predictability within the competitive drilling services market. The deal underscores the strategic importance of securing reliable drilling capacity in the Malaysian oil and gas sector. While the contract value remains undisclosed, its five-year duration suggests a substantial investment by Petronas to support its upstream exploration and production activities. This partnership between a local services provider and the national oil company highlights ongoing domestic activity and investment in maintaining and developing Malaysia's hydrocarbon resources.