Velesto Energy Berhad announced that the wreck removal of the Velesto NAGA 7 jack-up rig, which submerged off the coast of Sarawak on 4 May 2021, has been completed on 4th July 2024 based on requirements of the Marine Department. The company said it has received the Certificate of Completion and release order from the Marine Department on the successful wreck removal confirming that the removal order has been complied with.

With reference to the earlier announcements the incident occurred at the worksite whilst operating for a client due to rapid penetration into the formation on 3 May 2021, when the rig tilted and subsequently submerged on 4 May 2021.

The removal operations, except for the earlier removed helideck, Velesto said were carried out by the contractor, Boskalis Malaysia Sdn Bhd in accordance with applicable regulatory requirements and in close coordination with the relevant authorities. The operations for the removal of the wreck commenced offshore Sarawak at the end of May 2023 and were conducted over 2 seasons in 2023 – 2024. They involved removal of the wreck, removal of debris and closing activities, with the remaining recycling activities currently expected to close by December 2024.

The company said the loss of Velesto NAGA 7 was recovered from Hull & Machinery Insurers with recognition of insurance claim of RM560.9 million as announced in the Company's quarter results announcement on 28 February 2022. The cost of wreck removal it added is not expected to affect the Group's financial as covered by Protection & Indemnity Insurance taken by the Group.