Two jack-up rigs change hands

Vantage Holdings International, a subsidiary of Vantage Drilling International, has bolstered its managed services by divesting two jack-up rigs, which enable ADES Holding Company, part of Saudi Arabia-headquartered oil and gas drilling services provider ADES Group, to expand its rig fleet.

A share purchase agreement (SPA), disclosed in September 2024, was anticipated to allow ADES to acquire all of the issued and outstanding equity of Vantage’s wholly-owned subsidiary, Rig Finance (RFL), the owner of the 2009-built Soehanah 375-foot jack-up rig.

In addition, an asset purchase agreement (APA) for the firm’s indirectly-held subsidiary, P2021 Rig Co. was also confirmed, under which the 2007-built Topaz Driller 375-foot jack-up rig was also added to the list of rigs being sold to ADES.

The sale of both rigs, which come with an aggregate purchase price of $190 million in cash, subject to certain adjustments, has now been completed. Vantage is convinced that this further strengthens its position in managed services and delivers enhanced value to shareholders.

While the Topaz Driller jack-up rig is operating in the Malaysia-Thailand joint development area, the Soehanah jack-up rig operates in Indonesia. Vantage sees the divestment of these assets as part of its strategic focus on expanding its managed services business and maintaining a flexible, asset-light model that optimizes capital allocation.

Ihab Toma, CEO of Vantage Drilling, commented: “This transaction is a significant step in Vantage’s ongoing strategy to enhance shareholder value. By strategically selling these contracted rigs, we have shifted to a net cash position, allowing us to focus on expanding our managed services portfolio, which remains an area of focus for the company.

“We are confident this approach will further strengthen our financial position while providing ongoing, high-quality services to our clients. We are pleased to continue our strong partnership with ADES through this transaction. Southeast Asia is a key market, and the transfer of these rigs will enable ADES to further its expansion in the region, while Vantage remains well-positioned to grow its asset-light services business and deliver sustainable value to our shareholders.”

The sale of the jack-up duo to ADES follows months after Vantage made arrangements with TotalEnergies to offload a drillship, which was working in Namibia for the French oil major. Meanwhile, ADES has secured several new rig deals, including an offshore drilling assignment off the coast of Thailand.