TotalEnergies, Vantage Drilling Create Joint Venture for Exploration Ship

By David Sachs

TotalEnergies and Vantage Drilling International are forming a joint venture that will result in co-ownership of an oil-exploration ship.

The French energy company said Tuesday that it has a binding deal with the Texas-based oil firm to pay $199 million for a 75% interest in the venture owning the Tungsten Explorer drill vessel. Vantage will own the remaining 25% and operate the ship for 10 years, TotalEnergies said.

"Through this innovative partnership, TotalEnergies will be able to hedge deep-offshore drilling costs: the JV will provide us with both value and flexibility," TotalEnergies said.

TotalEnergies has used the ship to develop wells in Namibia, Cyprus and Congo, it said.

Write to David Sachs at [e-mail]

(END) Dow Jones Newswires

02-06-24 1117ET