Offshore driller Vantage Drilling has entered into a joint venture with ADES to provide deepwater drilling services in Egypt.
In a statement on Wednesday, ADES said the alliance will benefit from Vantage’s deepwater drilling experience and ADES’ “leadership position” within the Egyptian offshore drilling market.
The joint venture will operate Vantage’s deepwater drilling units in Egyptian waters on a bareboat charter agreement basis. According to ADES, talks are underway with regional operators.
The joint venture aims to capitalize from opportunities and prospects created by recent significant discoveries in the Mediterranean Offshore Egypt. As previously reported, Egypt is home to the Mediterranean Sea’s largest offshore gas discovery – the Zohr. The discovery was made by Eni in 2015, and the field is set to start producing later this year.
Sharing more on the joint venture, ADES said it would operate on a profit-sharing basis and ADES will have exclusive marketing rights within Egypt.
“The agreement will enable ADES to generate additional revenue without incurring the significant capital expenditure associated with deepwater drilling. As part of the JV, Vantage will gain access to the attractive Mediterranean basin, optimise access to local workforces and service providers and increase marketability of its ultra-deepwater fleet,” Ades said.
Mohamed Farouk, Chief Executive Officer of ADES International Holding, said shallow-water focus would remain the company’s 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 Officer of Vantage Drilling International stated: “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.”