Turkey’s TPAO Acquires Two Drillships from Eldorado
Turkey’s state oil company, TPAO, has made a significant acquisition, purchasing two drillships from Norway’s Eldorado Drilling. The newly acquired vessels, the West Draco (2014) and West Dorado (2015), are set to be deployed in Libya and southern Turkey. This purchase expands TPAO’s fleet, which now includes six drillships actively engaged in gas exploration and development.
Expansion of TPAO’s Fleet
With the addition of the West Draco and West Dorado, TPAO enhances its operational capabilities in the Mediterranean region. These drillships will join four existing vessels—the Fatih, Yavuz, Kanuni, and Abdulhamid Han—which are currently engaged in the development drilling of the Sakarya gas field. This field is notable for its substantial reserves, estimated at approximately 540 billion cubic meters of gas.
The newly acquired drillships are expected to play a crucial role in the appraisal of the Göktepe field, which has been recently discovered and is believed to contain around 75 billion cubic meters of gas. This strategic move by TPAO reflects the company’s commitment to strengthening its position in the energy sector and enhancing its exploration efforts in rich gas regions.
Eldorado Drilling’s Strategic Exit
The sale of the two drillships marks a significant financial decision for Eldorado Drilling, which reportedly sold each vessel at a loss for $245 million. Founded with aspirations to operate cutting-edge seventh-generation ultra-deepwater drillships, Eldorado faced challenges in securing contracts for the West Draco and West Dorado. The company successfully chartered only the Zonda drillship for operations in Brazil with Petrobras, while the other two remained idle, incurring substantial layup costs.
Bringing the West Draco and West Dorado into active service would have required an additional investment of approximately $80 million. Given the ongoing costs of maintaining the drillships in layup, estimated at around $20,000 per day per unit, the sale to TPAO represents a pragmatic solution for Eldorado, allowing them to recoup some losses while enabling TPAO to bolster its drilling operations.
