Energy supermajor TotalEnergies and offshore drilling contractor Vantage Drilling have signed a binding agreement to form a new joint venture (JV). Under the agreement, TotalEnergies will acquire the Tungsten Explorer drillship from Vantage Drilling.
To the tune of $199 million, TotalEnergies will acquire a 75% majority stake in the JV, with Vantage Drilling owning the remaining 25%.
“Through this innovative partnership, TotalEnergies will be able to hedge deep offshore drilling costs: the JV will provide us with both value and flexibility,” said TotalEnergies CEO Patrick Pouyanné.
Under the terms of the agreement, TotalEnergies will contract Vantage Drilling to operate the Tungsten Explorer for ten years. Boasting a power capacity of 42 MW and thrust capacity of 33 MW, the rig is currently operating on the Mangetti-1X well, offshore Namibia.
“This joint venture underscores TotalEnergies’ confidence in Vantage, and our client’s belief in the value of collaborating with a flexible and efficient drilling contractor,” added Vantage Drilling CEO, Ihab Toma.
