Vantage Holdings International and TotalEnergies Establish TEVA Ship Charter Joint Venture

Vantage Holdings International, a subsidiary of Vantage Drilling International, has partnered with France’s energy giant, TotalEnergies, to form a new joint venture named TEVA Ship Charter (TEVA). This joint venture aims to acquire a drillship currently operating off the coast of Congo.

Last year, Vantage and TotalEnergies entered into a strategic agreement that allowed TotalEnergies to acquire a majority share in a drillship stationed in Africa. As part of the deal, TotalEnergies agreed to purchase a 75% interest in the Tungsten Explorer drillship for $199 million.

The remaining 25% stake would be retained by Vantage, who will continue to operate the rig for the next ten years. TEVA was established as the joint venture entity to facilitate the acquisition of the Tungsten Explorer drillship upon completion of its current assignment in Congo, subject to standard sale and purchase conditions.

Ihab Toma, CEO of Vantage Drilling, expressed his enthusiasm about the partnership, stating, “We are proud to partner with TotalEnergies in this joint venture, marking a significant milestone for both companies. The creation of TEVA underscores our commitment to value creation through collaboration and innovative business models in offshore drilling.”

Definitive agreements have been signed by TotalEnergies, Vantage, and TEVA to facilitate the rig acquisition and joint venture management. These agreements include a sale and purchase agreement for the rig acquisition and a management agreement that entrusts Vantage with operating the Tungsten Explorer for a ten-year term, with the option to extend for an additional five years.

The Tungsten Explorer drillship, built in 2013, boasts a power capacity of 42 MW and a thrust capacity of 33 MW, enabling it to operate effectively in various weather conditions. The rig utilizes TotalEnergies’ Excellium additives, a premium fuel that enhances fuel efficiency and reduces emissions.

Equipped with a hook load capacity of 2.5 million pounds, offline capabilities, and managed pressure drilling equipment, the Tungsten Explorer is well-suited to meet TotalEnergies’ future global drilling requirements.

As TotalEnergies continues its quest for hydrocarbon reserves, the company has resumed exploration drilling in Namibia’s Orange Basin with the Tamboti-1X exploration well, targeting a significant resource potential of 1 billion barrels.