ADES has entered into a short-term exploration contract with Dana Gas for deepwater drilling services in the Egyptian Mediterranean basin. The service will be provided using Vantage Drilling International’s Tungsten Explorer drillship, comprising one firm well. The contract is estimated to last 77 days, with an extension option to an additional three wells.
The services will be subcontracted to ADVantage, a joint venture between ADES and Vantage, which was announced on 15 November 2017. ADVantage utilizes ADES’ local workforce and pre-qualification in the Mediterranean basin with Vantage’s Tungsten Explorer drillship, as well as their extensive deepwater drilling experience.
Amid significant gas discoveries and prospective drilling programs in the region, this contract presents several commercial opportunities which could be realized through an extension over the long term.
The contract will operate on a profit-sharing basis, enabling ADES to generate additional revenue without incurring the significant capital expenditure normally associated with deepwater drilling.
“Since the time of our listing, we have consistently highlighted the attraction of the asset light model,” Dr Mohamed Farouk, Chief Executive Officer of ADES, said. “We are extremely pleased to have secured our first contract in the Mediterranean with Dana Gas, where we will build on our track record of consistently delivering a high-quality service to our clients. This contract is fully consistent with our approach, as we continue to see attractive long-term prospects for the joint venture and our partner Vantage’ high-quality assets in the ultra-deepwater Egyptian market.”
“We are delighted to put the Tungsten Explorer back to work so soon after it completed certain upgrades as well as finishing its five year campaign for Total in Congo,” Ihab Toma, Chief Executive Officer of Vantage Drilling International, said. “This award recognizes the long track record of excellent performance and hard work of the crew of the Tungsten Explorer. In particular, we would like to express our appreciation and gratitude to Dana Gas for giving Vantage and ADES its trust. We look forward to working with ADES, through our joint venture, and continuing to provide industry leading service for our clients.”