Offshore drilling contractor Vantage Drilling and French energy major TotalEnergies have created a joint venture (JV) entity TEVA Ship Charter, which will acquire Vantage’s drillship Tungsten Explorer.
Subsequent to the completion of the current Tungsten Explorer contract in Congo, TEVA will acquire the Tungsten Explorer from Vantage subject to customary sale and purchase conditions precedent.
TotalEnergies, Vantage and TEVA have executed all definitive agreements in support of the rig acquisition and joint venture management including a sale and purchase agreement by which TEVA will acquire the rig and a management agreement pursuant to which Vantage will operate the Tungsten Explorer for a ten-year term with the option to extend for an additional five years.
To remind, Vantage and TotalEnergies signed a memorandum of understanding in February 2024 to set up a JV that would acquire the Tungsten Explorer drillship.
As part of the agreement, TotalEnergies will pay $199 million for a 75% interest in the JV owning the rig, with Vantage owning the remaining 25%.
“We are proud to partner with TotalEnergies in this joint venture, marking a significant milestone for both companies. The creation of TEVA and the execution of all definitive agreements reinforce our shared commitment to value creation through collaboration and creative business models in offshore drilling,” said Ihab Toma, CEO of Vantage Drilling.