Oil and gas company TotalEnergies and offshore drilling contractor Vantage Drilling International have established a joint venture (JV) entity, TEVA Ship Charter.
The formation of the JV follows a binding agreement signed in February 2024, under which TEVA will acquire the Tungsten Explorer drillship from Vantage after its current contract in Congo concludes.
The Tungsten Explorer will be managed by Vantage for ten years, with an option to extend for a further five.
TotalEnergies holds a 75% interest in the JV by investing $199m, with Vantage retaining the remaining 25%.
Built in 2013 for deep offshore drilling, the Tungsten Explorer drillship has a 42MW power capacity and a 33MW thrust capacity, allowing it to operate under various meteorological conditions.
It previously served in Namibia, drilling the Mangetti-1X well using Excellium additives fuel developed by TotalEnergies to optimise consumption and reduce emissions.
The drillship's features include a 2.5m pound hook load capacity, offline capabilities and managed pressure drilling equipment.
Vantage Drilling CEO Ihab Toma stated: “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.”
Vantage reported a third quarter (Q3) 2024 net loss of $10.6m ($0.80 per share), compared to near breakeven in Q3 2023. As of 30 September 2024, it held $57.6m in cash, down from $84m at year-end 2023, including restricted and pre-funded amounts from managed services customers.
