Drilling firm ADES has joined forces with a subsidiary of Vantage Drilling International.
The joint venture will focus on deepwater drilling in Egypt’s Mediterranean basin.
The agreement will enable ADES to generate additional revenue without incurring the significant capital expenditure associated with deepwater ventures.
As part of the deal, Vantage will gain access to the Mediterranean basin, to local workforces and service providers and increase marketability of its ultra-deepwater fleet.
The joint venture will operate Vantage’s deepwater drilling units in Egyptian waters on a bareboat charter agreement basis and discussions are underway with regional operators as it aims to capture opportunities amid significant discoveries and prospective drilling programmes in Egypt’s Mediterranean basin.
The pair will operate on a profit-sharing basis and ADES will have exclusive marketing rights within Egypt.
Dr. Mohamed Farouk, chief executive officer of ADES International Holding, said: “We are very excited to be partnering with such a reputable operator as Vantage and believe the JV will benefit both parties.
“This agreement exemplifies our asset-light model and is a natural development of ADES’ strategy that targets optimised cost structures across operating environments.
“We have a proven track record of offering exceptional value for money within our primary focus in shallow, non-harsh environments. While this remains our core strategy, our long-term JV with Vantage will extend our reach into deepwater drilling while retaining our low-cost model.”
Ihab Toma, chief executive of Vantage Drilling International added: “In ADES we have found a professional, well experienced Egyptian partner that will allow the JV to leverage each team’s capabilities, thereby providing a unique service in Egypt.”