Vantage Drilling Gains New Drillship
Acquired rights to ultra-deep Dragonquest drillship equipped for drilling in water depths up to 10,000 feet.
Vantage Drilling Co., Houston, (Amex: VTG) plans to acquire the rights and obligations under the construction contract for the ultra-deepwater drillship known as Dragonquest from Valencia Drilling Corp., a Marshall Islands corporation for approximately $164 million.
The Dragonquest was constructed at Daewoo Shipbuilding & Marine Engineering Co., Ltd. in Okpo, Korea. Construction has been completed on the vessel, and upon delivery of the Dragonquest and the closing of the transaction, Vantage will be required to make expenditures for the final construction payment, project costs, equipment, and spares, and the total delivered, in-service cost of the project, including the purchase price under the agreement with Valencia, totaling approximately $800 million.
In addition, Vantage has agreed to pay up to $5 million of Valencia's costs and expenses at closing.
The Dragonquest is expected to be deployed in the U.S. Gulf of Mexico, pursuant to an eight-year contract with Petrobras. The drillship is equipped for drilling in water depths of up to 10,000 feet, with a total vertical drilling depth capacity of up to 40,000 feet. The Dragonquest's hull design has a variable deck load of approximately 20,000 tons and measures 781 feet long by 137 feet wide.
Valencia is a subsidiary of F2 Capital, a Cayman Islands company and affiliate of F3 Capital, a Cayman Islands company by Hsin-Chi Su, a significant shareholder of the Vantage Drilling.
Vantage chairman and chief executive Paul A. Bragg says, “We are excited to acquire the Dragonquest as we continue to build one of the most modern and technologically advanced offshore drilling fleets in the world, and expect to complete the acquisition and take delivery of the rig in the coming weeks.”
FBR Capital Markets provided a fairness opinion to Vantage.
The deal closing and delivery of the Dragonquest are expected to take place in April.