Image:Greg Williams
France’s energy powerhouse, TotalEnergies, is set to acquire a commanding 75% stake in the Tungsten Explorer drillship from Vantage Drilling International. This significant transaction comes with a hefty price tag of $199 million, solidifying TotalEnergies’ foothold in the offshore drilling sector.
The binding agreement between TotalEnergies and Vantage establishes a new joint venture (JV), wherein TotalEnergies will own the majority share, leaving Vantage with a 25% stake. The JV will also enlist Vantage to manage the Tungsten Explorer rig for the next decade, emphasizing a long-term commitment between the two entities.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, expressed enthusiasm about the deal, stating, “TotalEnergies is pleased to enter into this agreement with Vantage to take shared ownership of a drillship, the Tungsten Explorer, which we already used in exploration and development activities in Namibia, Cyprus, and Congo.”
He highlighted the innovative partnership’s benefits, stating that it allows TotalEnergies to effectively manage deep-offshore drilling costs while providing value and flexibility. Pouyanné looks forward to continuing collaboration with Vantage’s experienced team overseeing the rig’s operations.
The Tungsten Explorer, a 2013-built drillship, boasts a power capacity of 42 MW and a thrust capacity of 33 MW, enabling operation in diverse meteorological conditions. Currently deployed in Namibia for TotalEnergies, the drillship is engaged in the Mangetti-1X well project.
Utilizing Excellium additives, a premium fuel developed by TotalEnergies, the drillship optimizes consumption and reduces emissions. With a hook load capacity of 2.5 million pounds, offline capabilities, and advanced managed pressure drilling equipment, the Tungsten Explorer aligns with TotalEnergies’ future global needs.
Ihab Toma, CEO of Vantage Drilling International, described the acquisition as a transformative event, emphasizing TotalEnergies’ confidence in Vantage’s capabilities. Toma anticipates strengthening the enduring relationship with TotalEnergies while leveraging the proceeds from the Tungsten Explorer’s sale to enhance financial stability and establish a substantial, long-term revenue stream.
This strategic move occurs concurrently with TotalEnergies’ expansion in the gas portfolio offshore Malaysia through a deal with Austria’s OMV. This additional venture will grant TotalEnergies a stake in SapuraOMV Upstream, further solidifying its position in the evolving energy landscape.
