TotalEnergies and Vantage Drilling launch rig joint venture

Vantage Holdings International, a subsidiary of Vantage Drilling International, has established a new joint venture (JV), named TEVA Ship Charter (TEVA), with France’s energy giant TotalEnergies, which will acquire a drillship currently working off the coast of Congo.

Vantage and TotalEnergies struck a deal last year, which would enable the French energy giant to get a majority share in a drillship on an assignment in Africa. Under the agreement, a new joint venture was to enable TotalEnergies to buy a 75% interest in the JV owning the Tungsten Explorer drillship for $199 million.

The remaining 25% would be retained by the offshore drilling contractor, which would stay on as rig operator for ten years. The duo created TEVA Ship Charter (TEVA) as their joint venture, which will acquire the Tungsten Explorer drillship upon completion of its current assignment in Congo, subject to customary sale and purchase conditions precedent.

Ihab Toma, CEO of Vantage Drilling, commented: “We are proud to partner with TotalEnergies in this joint venture, marking a significant milestone for both companies. The creation of TEVA and the execution of all definitive agreements reinforce our shared commitment to value creation through collaboration and creative business models in offshore drilling. We look forward to leveraging our expertise to ensure the long-term success of this partnership.”

Furthermore, TotalEnergies, Vantage, and TEVA have executed all definitive agreements in support of the rig acquisition and joint venture management, including a sale and purchase agreement by which the latter will acquire the rig and a management agreement according to which Vantage will operate the Tungsten Explorer for a ten-year term with the option to extend for an additional five years.

With a power capacity of 42 MW and a thrust capacity of 33 MW, the 2013-built Tungsten Explorer drillship can operate under a wide range of meteorological conditions. This mobile offshore drilling unit uses Excellium additives, a premium fuel developed by TotalEnergies to optimize consumption and reduce emissions.

With its hook load capacity of 2.5 million pounds, offline capabilities, and managed pressure drilling equipment, this drillship is said to meet the French player’s envisaged future global needs.

TotalEnergies is searching for more hydrocarbons, as confirmed by its resumption of exploration drilling in Namibia’s Orange Basin with the Tamboti-1X exploration well, described as a 1 billion barrel target.