As part of the agreement, Vantage will continue to manage the vessel for a ten-year term, with an option to extend for an additional five years.
Vantage Drilling International Ltd. announced the completion of the sale of its ultra-deepwater drillship, the Tungsten Explorer. The sale, finalized on August 11, 2025, transfers ownership of the vessel to TEVA Ship Charter LLC, a newly formed joint venture entity in which TotalEnergies holds a 75% stake and Vantage Drilling retains the remaining 25%.
This transaction is a culmination of a binding agreement that was initially announced in early 2024. The sale price for TotalEnergies' 75% interest was reported to be approximately $199 million, a move that was designed to completely deleverage Vantage's balance sheet and establish a significant, long-term revenue stream. The drillship itself is a sixth-generation, ultra-deepwater unit, built in 2013 and known for its robust capabilities, including a 42MW power capacity and a hookload capacity of 2.5 million pounds, making it suitable for a wide range of challenging deep-offshore drilling operations. The vessel has previously worked for TotalEnergies in exploration and development activities in locations such as Namibia, Cyprus, and Congo.
A key element of this agreement is that Vantage Drilling will continue to operate and manage the Tungsten Explorer under a ten-year contract, with an option to extend for an additional five years. This arrangement allows Vantage to continue leveraging its operational expertise and long-standing relationship with TotalEnergies, while also providing the company with a stable and predictable source of income. For TotalEnergies, the joint venture model offers both value and flexibility, enabling the company to hedge deep-offshore drilling costs while having direct control over a critical asset.
Ihab Toma, CEO of Vantage Drilling, expressed his satisfaction with the deal, stating, "We are delighted to have completed the sale of the Tungsten Explorer. We now look forward to a productive and mutually beneficial relationship for the joint venture with our esteemed client and partner TotalEnergies." His comments underscore the strategic nature of the partnership, which goes beyond a simple transaction and is aimed at fostering a creative business model for future collaboration.
Vantage Drilling, a Bermuda-based offshore drilling contractor, specializes in contracting drilling units and work crews for global oil and natural gas companies. The company also provides management services for drilling units owned by others, making the new contract a perfect fit for its business model.
