Vantage Drilling has completed the sale of three jack-up drilling rigs to ADES, through the sale if its subsidiary Emerald Driller Company (“EDC”).
ADES acquired EDC for $170,000,000 in cash, together with an additional $34 million in cash in respect of contract preparation cost where mobilization and contract preparation costs would be largely reimbursable by the client to ADES after closing.
According to ADES, the purchase price is subject to certain adjustments.
Of $204 million in proceeds, $4 million was retained in escrow as security for such potential price adjustments.
EDC owns the Emerald Driller jackup rig, the Sapphire Driller jackup rig, and the Aquamarine Driller jackup rig, each of which is operating in Qatar, along with their respective drilling contracts. In addition, subsidiaries of Vantage and ADES Arabia entered into support services agreements, under which, Vantage will, in exchange for customary fees and reimbursements, provide support services to EDC in respect of the three rigs operating in Qatar for three years.
Ihab Toma, Vantage’s Chief Executive Officer, said:"We are very pleased to have closed the sale of the Emerald Driller Company and its three jackup rigs. This transaction strengthens our balance sheet and provides Vantage with important financial flexibility. We will continue to support the operations of the three rigs for three years. We are excited to continue to leverage our management platform to bring first-class operational performance and efficiency to our clients and partners.”