Page 19: of Offshore Engineer Magazine (May/Jun 2026)

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Brazil, managed by Ventura Offshore. However, its pending

Background, Transaction Context and acquisition of 7th-generation drillship Deep Value Driller in

Strategic Rationale 3Q 2026 signals an intent to scale its deepwater footprint.

The deal brings together two companies that have un-

The merger effectively combines Vantage’s operational dergone signifcant portfolio reshaping in recent years.

Vantage has steadily streamlined its feet since 2020, platform and contract backlog with Eldorado’s capital de- divesting fve of its jackups to ADES between 2020 and ployment strategy, creating a hybrid model that blends capital-light rig management income with selective asset 2024 while retaining operational exposure via manage- ment agreements. The company now operates a leaner ownership exposure.

The approximate $257.6 million equity valuation im- portfolio that includes ultra-deepwater drillship Platinum

Explorer and its stake in Tungsten Explorer. In January plies a relatively modest valuation on a per-asset basis, re- 2025, TotalEnergies and Vantage formed a joint venture fecting both the limited scale of the current feet and Van- (JV) entity - TEVA Ship Charter - to handle ownership tage’s asset-light structure. Compared to recent transactions of the Tungsten Explorer. TotalEnergies paid $199 million involving premium drillships and jackup feets, the pricing for a 75% stake in the unit, with Vantage managing the appears conservative, suggesting the deal is more strategic unit on behalf of the JV under a 10-year agreement, with than valuation driven, with limited takeover premium.

an option for fve additional years.

Further Consolidation Likely, but Targeted

Meanwhile, Vantage also manages two jackups - Soeha-

Looking ahead, further feet optimisation appears likely, nah and Topaz Driller - sold by Vantage to ADES under three-year management agreements that commenced in albeit increasingly selective in nature. Rather than large-scale 4Q 2024. This repositioning has shifted Vantage toward mergers alone, the market is seeing more targeted acquisi- a more asset-light, services-oriented model with long-term tions of individual rigs, distressed assets, or niche players to fll portfolio gaps or expand into specifc regions or segments.

contracted visibility, such as Platinum Explorer’s upcom-

The Eldorado-Vantage merger underscores this shift ing three-year contract with ONGC offshore India.

- focusing on incremental scale and strategic alignment

Eldorado, by contrast, has taken a more transactional ap- rather than transformational size.

proach. After acquiring two 7th-generation newbuild drill-

While not a market-defning transaction on its own, the ships (West Draco and West Dorado) in 2023 and with- out ever bringing them into operation, it subsequently sold Eldorado-Vantage merger reinforces the ongoing consoli- these assets in 2025 to state-owned Turkish operator and dation theme across offshore drilling, particularly among rig owner Türkiye Petrolleri Anonim Ortakligi (TPAO) mid-tier players seeking to achieve scale and diversify oper- with the new owner changing the names to Çagri Bey and ating models. As companies continue to rationalise feets,

Yildirim, respectively. At the time of the merger agreement secure backlog, and position for a sustained upcycle in off- with Vantage, Eldorado’s sole operating asset is the 10,000ft shore activity, further M&A - both incremental and strate- 7th-generation drillship Atlantic Zonda, working offshore gic - remains a key feature of the sector outlook.

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