Houston-based Vantage Drilling Co. has said two of its ultra-deepwater drill ships have won long-haul contracts worth a combined $2.7 billion.

The Platinum Explorer won a five-year order award with India’s Oil and Natural Gas Company: the Titanium Explorer eight years with a Petrobras business. Both drill ships are being built at the yards of Daewoo Shipbuilding & Marine Engineering in Okpo, Korea.

The Platinum Explorer — owned by Vantage (45 percent) and by an affiliate of TMT Inc. (55 percent) — is seen earning $1.1 billion from 2010. “The Platinum Explorer is Vantage will operate the rig pursuant to a management agreement which provides for fees to Vantage, in addition to its proportionate share of cash flow,” a statement explained.

The Titanium Explorer in 2011 will start earning $1.6 billion (not including mobilizing) in the U.S. Gulf of Mexico. Petrobras can re-locate the rig worldwide as it wishes over eight years.

Expected revenues minus mobilization of the rig and costs escalations, are approximately. Vantage will operate the rig pursuant to a management agreement with an affiliate of TMT, which provides for fixed and performance-based fees.

"The addition of nearly $3 billion of contract backlog provides our Company with a stable base of business for many years to come,” said Vantage chief exec Paul Bragg.

Tags: Vantage Drilling Company