Vantage Drilling Company announced that its ultra-deepwater drillship Platinum Explorer has received a 5 year contract award from Oil and Natural Gas Company (ONGC) and the ultra-deepwater drillship Titanium Explorer has received an 8 year contract from a subsidiary of Petroleo Brasileiro S.A (Petrobras). Both rigs are currently being constructed in Daewoo Shipbuilding & Marine Engineering in Okpo, Korea.
The Platinum Explorer, following completion of shipyard construction, is planned to mobilize to India in the fourth quarter 2010. Expected revenues over the five-year contract term, excluding revenues for mobilization of the rig, are approximately $1.1 billion. The Platinum Explorer is owned forty-five percent (45%) by Vantage and fifty-five (55%) by an affiliate of TMT, Inc. (TMT). Vantage will operate the rig pursuant to a management agreement which provides for fees to Vantage, in addition to its proportionate share of cash flow.
The Titanium Explorer, upon completion of construction, is expected to mobilize in the third quarter 2011 to the US Gulf of Mexico. Furthermore, Petrobras has the right to re-locate and utilize the Titanium Explorer on a worldwide basis. Expected revenues over the eight-year contract term, excluding revenues for mobilization of the rig and costs escalations, are approximately $1.6 billion. Vantage will operate the rig pursuant to a management agreement with an affiliate of TMT, which provides for fixed and performance-based fees.
Paul Bragg, Chairman and Chief Executive Officer of Vantage, commented, "The deepwater contracts with ONGC and Petrobras are of major significance to Vantage. The addition of nearly $3 billion of contract backlog provides our Company with a stable base of business for many years to come. We are delighted to operate for two of the world's most active and fast-growing oil companies. These contract awards are a tribute to the extensive experience and expertise of our operating team, and highlight the capabilities of our new, modern fleet."
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