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Vantage Enters JV for Drillship Construction

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Vantage Drilling Company has entered into a joint venture with an affiliate of Skeie Group and other investors for purposes of constructing a new, high specification drillship at STX Offshore & Shipbuilding Co. Ltd.'s yard in South Korea. Through its investment of $31 million in the joint venture entity, Sigma Drilling Ltd., Vantage will initially own approximately 42 percent of the equity in Sigma.

Sigma is a newly-created entity formed for the purpose of constructing a BT-UDS Dynamical Positioned Ultra Deepwater Drillship. The vessel will be capable of and equipped to operate in 12,000 feet water depth, have 25,000 metric ton variable deck load, outfitted with a dual activity derrick, equipped with two seven-ram blow out preventer units and capable of storing up to twelve subsea X-mas trees. The vessel will feature a cutting-edge drilling package that is at the forefront of drilling technology. Delivery of the Vessel is expected in November 2015.

The initial equity funding by the partners is expected to be sufficient to cover substantially all of the shipyard and other capital expenditures which require payment prior to the completion and delivery of the drillship.

Paul Bragg, Vantage's Chairman and CEO, commented, "We view this high-spec drillship construction project as an excellent opportunity for Vantage to further grow our presence in the expanding ultra-deepwater drilling market, with only a small capital commitment. Our partners have been some of the most innovative and successful in this industry. STX and our major equipment providers have excellent track records and technical expertise. We believe that the construction contract provides exceptional value, attractive terms and the high end of available technology."

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Doug Sheridan | Nov. 21, 2012
One of the more interesting aspects behind this announcement is that Cameron Intl won the equipment package for the rig. This is the first ultra-deepwater rig package the company has won since it purchased LeTourneau Technologies and TTS Energy. It should be noted that TTS Group, the prior owner of TTS Energy, is an investor in Sigma. Although the legacy-affiliate relationship likely gave Cameron the inside track on the deal all along, its nonetheless a win for the company. If Cameron is to successfully challenge incumbents like NOV and Aker Solutions in the space, its going to have to convince customers that it not only CAN provide workable packages, but that it HAS in fact done so. This package seems a very interesting step in that direction.


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