TotalEnergies, Vantage Drilling form drillship-owning entity

Offshore drilling contractor Vantage Drilling has created a joint venture entity with French energy major TotalEnergies, which will own the Tungsten Explorer drillship.

The creation of the JV, named TEVA Ship Charter, aligns with the memorandum of understanding signed between the two companies in February 2024.

Under the terms of the agreement, TotalEnergies paid $199m for a 75% interest in the JV owning the 2013-built rig, with Vantage owning the remaining 25%. The JV will contract Vantage to operate the Tungsten Explorer for 10 years with the option to extend for an additional five years.

After the completion of the current rig contract in Congo, TEVA will acquire the drillship from Vantage.

TotalEnergies, Vantage, and TEVA have executed all definitive agreements in support of the rig acquisition and JV management including a sale and purchase agreement by which the joint venture will acquire the rig.

“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.