Eldorado Drilling Seals Vantage Acquisition
Eldorado Drilling Ltd and Vantage Drilling International Ltd have completed a merger to create a more scalable offshore drilling business.
Vantage Drilling, a Bermuda exempted company, combined with a Bermuda exempted subsidiary of Eldorado Drilling. Vantage Drilling is now a subsidiary of Eldorado Drilling.
Meanwhile Eldorado Drilling is now a Cayman Islands company, the "successor to substantially all of the business and assets of Eldorado Drilling AS, a Norwegian private limited liability company, following an internal reorganization conducted in connection with the consummation of the merger with Vantage", a recent joint statement said.
Vantage Drilling shareholders received $19 per share in cash. According to Vantage Drilling's announcement of the agreement May 29, the offer represented an equity value of around $257.6 million.
"In connection with closing, Eldorado will cause Vantage to apply for its ordinary shares to be delisted from Euronext Growth Oslo as promptly as practicable", the joint statement said.
"The combination brings together Eldorado’s Atlantic Zonda with Vantage's asset base, strong operating capabilities, global footprint, and proven track record managing high-specification drilling assets under long‑term operating and management arrangements, putting the combined enterprise in a position to deliver efficient, safe, and reliable services to a diversified customer base", the companies said.
The seventh-generation drillship Atlantic Zonda remains deployed in Brazil under third-party management, according to the statement.
Eldorado Drilling is set to add the Deep Value Driller pending an agreement it expects to close in the second half of 2026.
"The combination [with Vantage Drilling] is expected to broaden commercial opportunities across multiple regions, and reinforce the shared commitment to safety and operational excellence", the statement said.
Eldorado Drilling earlier said it had raised $425 million via a debt instrument sale to fund the acquisition, refinance existing debt and fund general corporate expenses.
Vantage Drilling held $366.83 million in total assets including $189.5 million in current assets at the end of the first quarter. Liabilities totaled $112.44 million, mostly current ($108.08 million).
"As of March 31, 2026, Vantage had approximately $65.3 million in cash, including $4.0 million in restricted cash and $11.4 million pre-funded by our Managed Services customers for near-term obligations", it said in its quarterly report May 26.
"We are pleased to report continued strong operational performance of the Tungsten Explorer in the Republic of the Congo prior to its mobilization to Angola", said Vantage Drilling chief executive Ihab Toma. "In addition, the Topaz Driller continues to deliver efficient operations during its ongoing campaign in Malaysia and the Platinum Explorer continues to prepare for its upcoming campaign following the previously announced notification of award for a three-year firm contract valued at approximately $261 million, with an additional one-year option".
To contact the author, email jov.onsat@rigzone.com
What do you think? We’d love to hear from you, join the conversation on the
Rigzone Energy Network.
The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.