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Vantage Drilling focuses on managed services after rig sale

Managed Services

Business Honor
21 January, 2025

Vantage Drilling shifts focus to managed services after selling two rigs, enhancing flexibility and growth opportunities.

Vantage Drilling International Ltd. ("Vantage Drilling") has finalized the sale of two premium jackup rigs to ADES Holding Company ("ADES"), the latest step in its strategic efforts toward expanding its managed services portfolio. The sale of the Topaz Driller and Soehanah rigs further underlines how seriously Vantage intends to pursue its asset-light strategy, optimize its capital, and focus on growing its managed services business-a core area for future growth.

Divesting these high-value assets is part of Vantage's strategy to enhance its managed services business. The sale of these rigs has allowed Vantage to transition into a net cash position, releasing funds for it to expand its managed services offerings, which are now becoming the core of its business model. This will help the company remain flexible and scalable while still providing high-quality services to clients.

Ihab Toma, CEO of Vantage Drilling, highlighted the strategic importance of this shift, stating, “By strategically selling these contracted rigs, we have put ourselves in a strong financial position to focus on expanding our managed services portfolio. Our goal is to remain a leader in providing efficient, asset-light services that meet the evolving demands of our clients in the offshore industry.”

The transaction will enhance Vantage's managed services, since it shifts away from heavy reliance on owned assets. This will provide the company with the ability to use flexibility and control the costs at its best. Moving forward toward its focus on managed services as a business model, Vantage Drilling will evolve for longer-term growth by offering innovative, efficient solutions to the offshore oil and gas sector.

Focusing on managed services, Vantage Drilling is in tune with the current industry trends and well-positioned to capture the emerging opportunities within a competitive market.