ADES, Vantage target deepwater Mediterranean drilling opportunities
ADES International Holding has entered into a long-term joint venture agreement with Vantage Drilling International to offer deepwater drilling services in Egypt’s Mediterranean basin.
DUBAI, UAE – ADES International Holding has entered into a long-term joint venture (JV) agreement with Vantage Drilling International to offer deepwater drilling services in Egypt’s Mediterranean basin.
The agreement will allow ADES, currently a jackup provider in the shallow-water MENA region, to generate additional revenue without incurring the extra capex associated with deepwater drilling.
For Vantage, the JV provides access to the Mediterranean basin, increasing the marketability of the company’s ultra-deepwater fleet.
The JV will operate the deepwater drilling units in Egyptian waters on a bareboat charter agreement. Discussions are already under way with regional operators, with ADES holding exclusive marketing rights within Egypt.
Dr. Mohamed Farouk, CEO of ADES International Holding, said: “This agreement exemplifies our asset-light model and is a natural development of ADES’ strategy that targets optimized cost structures across operating environments.
“We have a proven track record…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 mode.”