Middle East

ADES buys 3 jack-up rigs from Vantage

Vantage Drilling, an offshore drilling company, has agreed to sell its subsidiary Emerald Driller Company (“EDC”) to ADES for $ 170 million in cash, subject to certain adjustments.

EDC is the owner of the emerald driller jackup rigs operating in Qatar and will begin drilling contracts for the sapphire driller jackup rigs and aquamarine driller jackup rigs and their respective before the end of the sales transaction. .. Operations in Qatar in the first and second quarters of 2022, respectively.

Also, at the end of the transaction, Vantage and ADES’s subsidiaries agreed to enter into a support services agreement. Under this agreement, Vantage’s subsidiary will provide support services to ADES for three rigs that will operate in Qatar for three years.

The two companies also said they have signed a new support services agreement and an agreement to pursue a global strategic alliance, leveraging an existing joint venture in Egypt. Under this agreement, the parties have agreed to work together to explore future commercial and operational opportunities.

In addition, Vantage announced that through a joint venture between Vantage and ADES, the Tungsten Explorer drillship has returned to work for a private client off the coast of Egypt. The excavation contract period is 150 days. Tungsten Explorer Rig-Image Source: Vantage Drilling

Ihab TohmaVantage, Chief Executive Officer of Vantage, commented: The new transaction strengthens the balance sheet and provides Vantage with significant financial flexibility. The sale of this business does not end the involvement of Qatar in these rigs. This is to continue to support the operation of the three rigs for three years.

Tohma said: “The relationship with ADES began in 2017, when we launched a joint venture that leverages Vantage’s modern fleet and deep sea drilling experience, as well as ADES’s experience, expertise and leadership position in Egypt. Allowed ADES to gain experience in deep-sea drilling spaces, paving the way for Vantage to access the fascinating Mediterranean coast.

“Since then, ADES has grown significantly and ADES currently employs more than 3,500 people and owns 55 rigs. The two companies have established a relationship to the next level and both parties have crossed the market. We are pleased to be able to work together. Egypt will achieve further efficiency and leverage the operational expertise and financial strength of both parties. The success of the relationship between the two companies is the work of Tungsten Explorer in Egypt. Proven by Vantage’s announcement that it has returned to. We are a venture and will continue to provide our clients with industry-leading services. ”

Doctor Mohamed Farouk, ADES Chief Executive Officer said: By adding Qatar’s business to its portfolio, ADES will continue to implement a strong and disciplined growth strategy, expanding its significant presence in the region while adding top-level international and domestic oil companies to its customer base. To do.

“This transaction will allow us to add three premium jackup rigs to our fleet, including all crew and staff to further strengthen and strengthen our existing unique workforce. The transaction is for two companies. Demonstrating continued trust between us. Working together in Qatar and Egypt, we are excited about other potential collaboration opportunities. ”

https://www.oedigital.com/news/493009-ades-to-buy-three-jack-up-rigs-from-vantage-drilling-for-170m ADES buys 3 jack-up rigs from Vantage

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