Vantage Drilling International (“Vantage”), announces today that it has reached an agreement with a subsidiary of ADES International Holding Ltd. (LON:ADES), the London-listed offshore and onshore provider of oil and gas drilling and production services in the Middle East and Africa, to form a joint venture that will provide deepwater drilling services offshore of Egypt.
The Egyptian joint venture company will capitalize on Vantage’s modern fleet and deepwater drilling experience and ADES International’s experience, expertise and leadership position in Egypt’s Mediterranean basin. The agreement will allow Vantage to bareboat charter its available deepwater units to the joint venture while allowing it to access a new, attractive and low cost market. The joint venture will operate on a shared profit basis and will have exclusive deepwater marketing rights within Egypt. The relationship will enable ADES to gain experience in the deepwater drilling arena and grant Vantage access to the attractive Mediterranean basin while increasing the marketability of its deepwater fleet.
Commenting on the joint venture, Mr. Ihab Toma, Chief Executive Officer of Vantage Drilling International stated, “In ADES we have found a professional, well experienced Egyptian partner that will allow the joint venture to leverage each team’s capabilities, thereby providing a unique service in Egypt. We very much look forward to a long and mutually beneficial relationship with ADES.”
Dr. Mohamed Farouk, Chief Executive Officer of ADES stated, “We are very excited to be partnering with such a reputable operator as Vantage and we look forward to implementing favorable synergies that will benefit both parties. This agreement exemplifies our asset-light model, a natural development of ADES’s strategy that targets optimized cost structures across operating environments. We have a proven track record of offering exceptional value for money within our primary focus in shallow, non-harsh environments. While this remains our core strategy, our long-term JV with Vantage will extend our reach into deepwater drilling while retaining our low-cost model.”
Vantage Drilling International, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships, four premium jackup drilling rigs and one standard jack-up drilling rig. Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells globally for major, national and large independent oil and natural gas companies. Vantage also provides construction supervision services and preservation management services for, and will operate and manage, drilling units owned by others. www.vantagedrilling.com
ADES International Holding extends oil and gas drilling and production services through its subsidiaries and is a leading service provider in the Middle East and Africa, offering onshore contract drilling as well as workover and production services in Egypt, Algeria and Saudi Arabia. The company is pre-qualified in markets including Egypt, Saudi Arabia, Algeria, India, Mexico and the Saudi–Kuwaiti Neutral Zone. Its over 1,200 employees serve clients including major national oil companies (“NOCs”) such as Saudi Aramco and Sonatrach as well as joint ventures of NOCs with global majors including BP and Eni. While maintaining a superior health, safety and environmental record, the Group currently has a fleet of nine jack-up offshore drilling rigs, three onshore drilling rigs, a jack-up barge, and a mobile offshore production unit (“MOPU”), which includes a floating storage and offloading unit. ADES International Holding is the largest offshore drilling operator in Egypt by number of rigs.
The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company's filings that it may be required to make, or may otherwise voluntarily make, with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements. Vantage disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.