Vantage Drilling sells 3 jackup rigs to ADES Arabia, forms alliance

Vantage Drilling International announced today that its directly held subsidiary, Vantage Holdings International, has agreed to sell wholly owned subsidiary Emerald Driller Co. for $170 million in cash, subject to certain adjustments, to ADES Arabia Holding. The sale is expected to close in 2022's second quarter.

Emerald owns the jackup rig Emerald Driller, operating in Qatar, and will own, prior to the sale's closing, the jackup rigs Sapphire Driller and Aquamarine Driller, which are both expected to begin operating in Qatar in 2022. Vantage and ADES also entered into a support services agreement whereby Vantage will provide ADES with support services for the three rigs for three years.

Vantage also announced that it entered into an agreement with ADES to "pursue a global strategic alliance leveraging the new support services agreement and their existing joint venture in Egypt." Under the agreement, the companies agreed to work together "on exploring future commercial and operational opportunities."

Regarding the sale, Vantage CEO Ihab Toma said, "The new transaction will strengthen our balance sheet and will provide Vantage with important financial flexibility."

Vantage provides offshore drilling rigs, crews and services to assist oil and gas companies in drilling wells.