The ripple effects of international sanctions have reached the offshore drilling sector, as Vantage Drilling International, a Bermuda-based offshore contractor, confirms the termination of a major drilling deal involving its Platinum Explorer drillship.
The 15-year-old ultra-deepwater rig was slated for an approximately 260-day drilling campaign under a conditional letter of award (CLOA) signed in April 2025, estimated at $80 million. However, Vantage announced that the project has been called off due to sanctions that rendered contract execution unlawful.
“The termination is due to changes in economic sanctions applicable to the campaign, rendering the contract execution unlawful and therefore subject to termination,” the company said in a statement.
The Platinum Explorer, built in 2010, is capable of operating in water depths of up to 10,000 feet and drilling to 40,000 feet, positioning it among the high-performance assets in Vantage’s fleet.
The contract—originally expected to start in Q4 2025 following mobilization during Q3 had previously been extended twice, first in July and again in August 2025.
Despite this setback, Vantage Drilling remains optimistic about its market position. Earlier this year, the company secured marketing rights for a newbuild seventh-generation ultra-deepwater drillship, enabling it to pursue fresh opportunities across Africa, the Mediterranean, Asia, and Australasia.
The termination underscores the growing impact of international sanctions on offshore operations, tightening compliance risks and reshaping investment decisions within the global drilling landscape.
