Vantage Drilling Company announced Tuesday that it has received a conditional letter of award for its newbuild drillship the Tungsten Explorer (UDW drillship) to work in West Africa. The award is for a period of up to four years commencing in mid 2014. The contract has a minimum duration of two years, while the customer has four six-month options to extend the contract. The letter of award is subject to customary conditions including negotiating the final terms of the contract which is anticipated to be completed in the first quarter 2013. The estimated revenue over the initial two year firm period of the contract is approximately $468 million, including mobilization.
Paul A. Bragg, Chairman and Chief Executive Officer of Vantage, commented:
"The announced project is an attractive cornerstone for us. Since the Tungsten Explorer is scheduled for delivery in May 2013, we expect to obtain additional work for the unit to commence upon delivery from the shipyard. We are currently discussing drilling requirements for the second half of 2013 and early 2014 with both affiliates of the counterparty to this contract, as well as several others customers. We expect that we will conclude another contract, thereby increasing Tungsten's contracted backlog, inclusive of options, to be approximately five years from commencement."
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