Vantage Drilling's Bid for Platinum Explorer Contract

Vantage Drilling is preparing to submit a bid for a multi-year contract in Asia for its deepwater drillship, the Platinum Explorer. The vessel has been warm stacked for some time and recently had a contract terminated. The bid is targeted at India’s Oil & Natural Gas Corporation (ONGC), which requires a dynamically positioned drillship for a 36-month charter, with an option to extend. The bidding deadline was previously extended by ONGC.

Strategic Importance and Alternative Opportunities

The ONGC opportunity is Vantage's primary target to reactivate the Platinum Explorer. However, the company is also pursuing other prospects to avoid prolonged inactivity. As stated in an earlier earnings call, Vantage cannot indefinitely wait for ONGC and is actively chasing additional opportunities simultaneously.

Fleet Overview and Current Operations

Vantage's fleet includes two drillships: the Platinum Explorer and the Tungsten Explorer, the latter owned in a joint venture with TotalEnergies. The company also manages two shallow-water rigs. The Topaz Driller is currently operating for Carigali-PTTEPI Operating Company in a Malaysia-Thailand joint development area, while the Soehanah is warm stacked in Johor Bahru.

Financial Performance and Liquidity

Vantage reported a net income of $67.2 million for the third quarter, a significant improvement from a net loss of $10.6 million in the same period the previous year. The company holds $197.4 million in cash, which includes $35 million pre-funded for upgrades to the Tungsten Explorer, $2.4 million in restricted cash, and $4.7 million pre-funded by managed services customers for near-term obligations. The transaction with TotalEnergies regarding the Tungsten Explorer has strengthened Vantage's liquidity position.

Tungsten Explorer Upgrades and Deployment

The Tungsten Explorer has undergone substantial upgrades in the shipyard as part of the joint venture with TotalEnergies. It has now mobilized to West Africa, where operations commenced in early November.