Vantage Drilling Worldwide Ltd. has accomplished the sale of two contracted premium jackup rigs to Saudi Arabia’s ADES Holding Firm.
The sale contains the Topaz Driller jackup rig, working within the Malaysia-Thailand Joint Growth Space, and the Soehanah jackup rig, owned by Rig Finance Ltd. (RFL), which operates in Indonesia.
Vantage Drilling mentioned in a information launch that the divestment of the property underscores its “strategic concentrate on increasing its managed providers enterprise and sustaining a versatile, asset-light mannequin that optimizes capital allocation”.
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Vantage Drilling CEO Ihab Toma mentioned, “This transaction is a big step in Vantage’s ongoing technique to boost shareholder worth. By strategically promoting these contracted rigs, now we have shifted to a web money place, permitting us to concentrate on increasing our managed providers portfolio, which stays an space of focus for the Firm. We’re assured this strategy will additional strengthen our monetary place whereas offering ongoing, high-quality providers to our shoppers”.
“We’re happy to proceed our robust partnership with ADES by way of this transaction. Southeast Asia is a key market, and the switch of those rigs will allow ADES to additional its growth within the area, whereas Vantage stays well-positioned to develop its asset-light providers enterprise and ship sustainable worth to our shareholders,” Toma added.
Worldwide oil and fuel drilling agency ADES in September introduced an settlement to accumulate the 2 rigs by way of its immediately owned subsidiary ADES Worldwide Holding Ltd. for a complete consideration of $190 million, topic to working capital and different changes at date of closing.
The acquisition is a strategic transfer to additional solidify its presence in Southeast Asia, “a area poised for robust manufacturing development in opposition to a backdrop of tight jackup market circumstances,” ADES mentioned in an earlier assertion.
The addition of those two new rigs will improve ADES’ fleet within the India and SEA area, increasing its operations to seven jackup rigs throughout Indonesia, Thailand, India and a brand new working territory within the joint improvement space of two essential international locations to the corporate, it mentioned.
ADES Holding CEO Mohamed Farouk mentioned, “This acquisition marks a big milestone for ADES as we proceed to develop our footprint in Southeast Asia, a area the place we see super development potential. By buying these premium jackup rigs, we’re not solely enhancing our fleet but in addition getting into a brand new, essential market within the Malaysia-Thailand Joint Growth Space. I’m additionally happy with our group’s potential to establish and swiftly execute the transaction, tapping into new markets, all whereas sustaining sustainable leverage ranges as ADES makes use of the accessible financing commitments to pursue worth accretive alternatives”.
“This transaction additional solidifies our relationship with Vantage Drilling, constructing on our historical past of profitable partnerships. The enticing valuation of this acquisition displays our disciplined strategy to capital allocation and our potential to capitalize on market alternatives. With our ‘contract acquisition’ mannequin minimizing danger publicity, this acquisition is poised to have a direct and constructive impression on our profitability, reinforcing our dedication to producing sustainable returns for our shareholders,” Farouk added.
Vantage Drilling Worldwide Ltd. describes itself as an offshore drilling contractor, with a present owned fleet of two ultra-deepwater drillships and two premium jackup drilling rigs. The corporate’s major enterprise is to contract drilling models, associated tools and work crews totally on a day-rate foundation to drill oil and pure fuel wells globally for main, nationwide and impartial oil and fuel firms.
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