Vantage Drilling bags $80m drillship deal

By Admin

24 Apr, 2025

Major Milestone for Platinum Explorer

Offshore drilling contractor Vantage Drilling has secured a significant opportunity in the offshore energy sector by receiving a conditional letter of award (CLOA) for its drillship, Platinum Explorer. The client, whose identity remains undisclosed, has shown interest in the 2010-built drillship for an extensive offshore drilling campaign.

Deal Worth $80 Million

The CLOA outlines a potential contract value of approximately $80 million. The project is expected to span around 260 days, which includes not just drilling operations but also the mobilisation period, contract preparation time (which is paid for), and demobilisation.

Cost-Plus Margin Payment Structure

Vantage Drilling has revealed that a material portion of the contract value—particularly the mobilisation and contract preparation—will be reimbursed based on actual costs incurred, with an additional limited margin added. This reflects a cost-plus arrangement, ensuring transparent and efficient cost management between the client and Vantage.

Conditional Terms and 90-Day Validity

The CLOA comes with a 90-day validity period. During this time, both parties aim to finalise the detailed contract terms. The award remains conditional, pending final agreement on contract conditions and the client obtaining all necessary regulatory and operational approvals.

Awaiting Final Execution

Until the final execution of the contract or the end of the validity period, the CLOA will remain in effect. If executed, this deal could represent a strong forward step for Vantage Drilling in maintaining the utilisation of its premium fleet and expanding its operational footprint.