French supermajor TotalEnergies (LON: TTE) has signed a $199 million to take 75% ownership of the Tungsten Explorer drillship.
The remaining 25% stake in the vessel is claimed by Vantage, a firm with ” deep offshore drilling experience” TotalEnergies said in a company update.
The joint venture contract signed by the two firms will have Vantage operate the Tungsten Explorer drillship for a decade.
“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 Patrick Pouyanné, chairman and chief executive of TotalEnergies.
“We look forward to continuing our journey together with the experienced Vantage team that will continue to oversee the rig’s operations.”
Built in 2013, the Tungsten Explorer is designed for deep offshore drilling and has a power capacity of 42MW and thrust capacity of 33MW.
Currently operating in Namibia on the Mangetti-1X well in Namibia, the Tungsten Explorer is using a TotalEnergies-developed fuel said to reduce emissions and “optimize consumption.”
The French supermajor shared: “With its hookload capacity of 2.5 million pounds, offline capabilities, and state-of-the-art Managed Pressure Drilling equipment, this drillship meets TotalEnergies’ envisaged future global needs.”
Mr Pouyanné added: “TotalEnergies is pleased to enter into this agreement with Vantage to take shared ownership of a drillship, the Tungsten Explorer, which we already used in exploration and development activities in Namibia, Cyprus and Congo.”
Vantage’s chief executive, Ihab Toma, described the deal as “a transformative event” for his company.
He added: “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.
“We very much look forward to strengthening our longstanding and mutually beneficial relationship with our esteemed client, TotalEnergies.”
Vantage Drilling is an offshore drilling contractor, with a fleet of two ultra-deepwater drillships, and two premium jackup drilling rigs.
Mr. Toma continued: “The proceeds from the sale of the Tungsten Explorer will completely deleverage our balance sheet while putting in place a meaningful, long-term revenue stream leveraging our strong management expertise.”