VELESTO regrets to inform that an incident involving one of our rigs, VELESTO NAGA 7 occurred at the worksite due to soil rapid penetration on 3 May 2021, Monday, whilst operating at Salam-3 well off the coast of Sarawak for ConocoPhillips Sarawak, as the operator of WL4-00 PSC. The rig tilted during the incident and subsequently on 4 May 2021, Tuesday, VELESTO NAGA 7 fully submerged at the location. Drilling activities have not commenced and no well has been drilled at the time of incident.

All personnel on board, totalling 101, are safely transferred to rescue vessels immediately after the incident, where 85 of these personnel have already arrived in Miri, Sarawak. The remaining 16 personnel are presently en route to Miri and are expected to arrive late tomorrow morning, 5 May 2021, Wednesday.

All the relevant authorities have been duly informed and we are currently monitoring the incident location for any potential adverse impact.

The Company is investigating the incident and evaluating recovery options. While the rig is covered by insurance, potential recovery efforts are ongoing and monitored.

VELESTO extends gratitude to all parties involved in the evacuation operation after the incident and also the ongoing recovery efforts, including our client and all relevant authorities.