TotalEnergies acquires majority stake in JV with Vantage Drilling for $199m

In a significant move within the global energy sector, TotalEnergies and Vantage Drilling International have announced a groundbreaking joint venture (JV) agreement, under which TotalEnergies will acquire a 75% interest in the JV owning the Tungsten Explorer drillship for $199 million, with Vantage retaining the remaining 25%. This strategic partnership marks a pivotal development in offshore drilling, leveraging Vantage’s deep offshore drilling expertise and TotalEnergies’ extensive experience in exploration and development activities.

The JV, underscored by a 10-year contract for Vantage to operate the Tungsten Explorer, represents a significant investment in the future of deep-offshore drilling. Patrick Pouyanné, Chairman and CEO of TotalEnergies, emphasized the innovative nature of this partnership, highlighting the value and flexibility it brings to TotalEnergies’ operations. The Tungsten Explorer has been instrumental in TotalEnergies’ exploration and development activities across Namibia, Cyprus, and Congo, showcasing the drillship’s critical role in the company’s global strategy.

Ihab Toma, CEO of Vantage Drilling International, described the joint venture as a transformative event, showcasing TotalEnergies’ confidence in Vantage’s capabilities. The sale of the Tungsten Explorer to the JV not only deleverages Vantage’s balance sheet but also establishes a long-term revenue stream, reinforcing the company’s strong management expertise in the drilling sector.

Constructed in 2013, the Tungsten Explorer stands as a testament to modern drilling capabilities, designed for deep offshore operations. With a power capacity of 42MW and thrust capacity of 33MW, the drillship is equipped for operations in diverse meteorological conditions. Its commitment to sustainability is evident in its current operation in Namibia, where it utilizes Excellium additives by TotalEnergies to optimize fuel consumption and reduce emissions.

TotalEnergies, a global multi-energy company, is committed to producing and marketing a wide range of energies that are affordable, sustainable, reliable, and accessible. With a presence in nearly 130 countries and over 100,000 employees, TotalEnergies prioritizes sustainable development in all aspects of its operations. Vantage Drilling International, an offshore drilling contractor, boasts a fleet of advanced drilling units and is dedicated to providing efficient drilling services to major, national, and independent oil and gas companies worldwide.

This strategic joint venture between TotalEnergies and Vantage Drilling International heralds a new era in offshore drilling, focusing on sustainability, efficiency, and innovation in the global energy market.