introduction to vantage drilling international october...

Introduction to Vantage Drilling International

27October2016

Strategic Overview

ExperiencedPeople

High Specification

Assets

Long-term Customer

Relationships

Financial Structure

Vantage was founded with avision of bringing the bestpeople together with a highspecification, modern fleet inthe offshore drilling industry.

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Company Highlights

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• Premium high-specification drilling units, including four jackups and three ultra-deepwater drillships.

• Our two jackups, the Aquamarine Driller and the Topaz Driller, are upgraded for HPHT work.

• Vantage’s modern rigs are capable of drilling to deeper depths and possess enhanced operational efficiency and technical capabilities, resulting in higher utilization, dayrates and margins.

Premium Fleet

• Successful track record of managing, constructing, marketing and operating offshore drilling units.

• In-house team of engineers and construction personnel overseeing complex construction projects.

• All newbuilds delivered on budget and on time.

• Jackup fleet operating productive time 99% .

• DP ship fleet operating productive time 97%.

• Excellent new build operating performance.

Proven Operational Track Record

• Carried out in house construction management of Vantage Fleet – 4 jack-ups and 3 drillships

• Completed significant a new-build project for the SeaDragon’s semisubmersibles and Aker Drilling (TO)’s drillships.

• Provided Management services for various Banks, Hedge Funds, Investment players.

• Providing construction management for 4 Oro Negro jackups and operations management for 2 jackups for Oro Negro.

• Providing construction management to Sonangol for two ultra-deepwater drillships.

• Provided Vantage with significant engineering expertise and experience in Korean, Chinese and Singaporean shipyards.

Construction Supervision and Management

Arrangements

Company Highlights (Cont.)

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• Management team with extensive experience; average of 29 years in the drilling industry.

• Includes international and domestic public company experience with industry-leading peers involving numerous acquisitions, debt and equity financings.

• Experienced operating personnel.

Experienced Management and Operational Team

(1) PVEP Phu Quy Petroleum Operating Co. Ltd. is a joint venture interest between PetroVietnam Exploration Production Corp. and Total E&P Vietnam.

Capital restructuring plan

• Completed its pre-packaged restructuring and recapitalization plan.

• Eliminated more than $1.5 billion of senior secured debt and most cash interest.

• Received $75 million in new exit financing.

• Strategically positioned for growth and taking advantage of down-turn opportunities.

• One of the strongest balance sheets in the industry. Positioned for the future.

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Through the eyes of our clients, employees, shareholders, service partners and the general public in all the countries we operate.

“ E X C E E D I N G E X P E C TAT I O N S ”

Our Vision

Core Values

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We are focused on our PEOPLE.

Through the success of our people ,

will come the success of our company and our clients.

P R O T E C T I N G People, the Environment and Equipment

E N H A N C I N G Value

O P E R A T I O N A L Excellence

P R O C E D U R A L Compliance

L E A D E R S H I P by Example

E T H I C A L Business Standards

“P E O P L E ”

Our People

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Experienced Management Team

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Years Experience Relevant Experience

Ihab Toma

CEO30 years

¡ Executive Vice President – Chief of Staff, Transocean (2012 – 2013)¡ Executive Vice President – Operations, Transocean (2011 – 2012)¡ Executive Vice President – Global Business, Transocean (2010 – 2011)¡ Senior Vice President – Marketing and Planning (2009 – 2010)¡ Various roles at Schlumberger (1986 – 2009)

Doug Halkett

COO33 years

¡ Division Manager in Northern Europe, Transocean (2004 – 2007) ¡ Operations manager in the Gulf of Mexico (2001 – 2003) and in the UK (1996 – 2001)¡ Various operations and business roles, Forasol-Foramer (1988 – 1996)

Tom Cimino

CFO25 years

¡ Chief Financial Officer, AEI Services, LLC (2012 – October 2016)¡ Vice President and Controller, AEI Services, LLC (2007 - 2012)¡ Director - Global Capital Markets Group at Pricewaterhouse Coopers (2003 - 2007)¡ Various roles at United States Securities and Exchange Commission, Adidas America and KPMG

Bill Thomson

Vice President Marketing and Business Development26 years

¡ VP Technical Services, Supply Chain and Projects (2008 – 2016)¡ Asset Operations Manager, Transocean’s UK fleet¡ Various roles in Engineering, Project Management, New Build Construction and Technical Support

Edward Brantley

CAO33 years

¡ Vice President & CAO, Transmeridian Exploration Incorporated (2005 – 2008)¡ Vice President, Treasurer & CAO, Pride International, Inc. (2000 – 2005)¡ Various management positions at Baker Hughes, Inc. (1989 – 2000)

Dave Weatherly

VP QHSE35 years ¡ Regional HSE and Security Manager, Tidewater (2003 – 2008)

¡ Previous experience in HSE with APG/Salamis JV, Houlder Marine, Deutag and KCA

Dallas Bozeman

Director of Special Projects32 years

¡ Director of Deepwater Operations (2011 - 2015)¡ General Manager, Operations Preparation, Seadrill (2007 – 2010)¡ Rig Manager and various operational roles, Transocean (1980 – 1985) (1997 – 2007)¡ Industrial Engineer, Hyster Forklifts (1985 – 1997)

Guy Dawson-Smith

Director of Operations29 years

¡ Director of Shallow Water Operations (2013 – 2015)¡ Director of Project Management (2008 – 2015)¡ Operations Integrity Manager – Transocean EAU Business Unit.¡ Various roles in Project Management, New Build Construction, Maintenance Management & Technical

Support.

Financial Strength

• Pro-active Capital Restructuring Plan– Removes near-term maturities– Reduces debt services

• Pro-active cost management and workforce reductions.

• Amended and extended Tungsten Explorer contract with Total E&P adding an additional two years of backlog.

• Added long term 18 month Contract with Total E&P in Middle East for the Emerald Driller.

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Debt Summary

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Principal Outstanding

Credit Agreement:$32.0 million Letter of Credit Facility -$ -$ bears interest @ 5.5%

2019 1st Lien Term Loan Facility 143.0$ Interest 10.0$ matures December 31, 2019, Amortization 1.4$ bears interest @ Libor + 6.5% 11.4$

10% Senior Secured Second Lien Notes 76.1$ Interest 7.6$ matures December 31, 2020,bears interest @ 10.0%

1%/12% Step-Up Senior Secured Third Lien 750.0$ -$ Convertible Notesmatures December 31, 2030,bears interest @ 1% for 4 years and then 12%to maturity; all interest is payable in-kind

Total 969.1$ 19.1$

Debt Service(in millions) Third Lien Convertible Notes

do not require any cash debt service prior to maturity.

These notes are convertible at the option of the holders for 3

years. Thereafter, they are convertible at the option of

the Board of Directors.

Ultra-PremiumMarinePacificClass375Jackups

The Vantage Fleet

Ultra-Deepwater10,000ft &12,000ft Drillships

PlatinumExplorer TitaniumExplorer TungstenExplorer

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EmeraldDriller SapphireDriller AquamarineDriller TopazDriller

Vantage Owned Rig Fleet – Jackups

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Shipyard Built PPL, Singapore

Shipyard Delivery December 2008

Design BMC 375 Pacific Class

Dimension 236 ft x 224 ft x 27.9 ft

Water Depth (Max) 375 ft

Drilling Depth (Max) 30,000 ft

Cantilever Reach 75 ft aft, 30’ transverse

Leg Length 506 ft

Spudcan Diameter 55.5 ft

Variable Deck Load (Operating) 7,497 kips

BOP 18-3/4”, 15M, Cameron BOP & 18-3/4” 10M Cameron Annular

Accommodation (Persons) 120

Emerald Driller

Sapphire Driller Shipyard Built PPL, Singapore

Shipyard Delivery July 2009






Leg Length 506 ft



BOP 18-3/4”, 15M, Cameron BOP & 18-3/4” 10M Cameron Annular


Vantage Owned Rig Fleet – Jackups (Cont.)

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Shipyard Delivery September 2009






Leg Length 506 ft



BOP18-3/4”, 15M, Cameron BOP & 18-3/4” 10M Cameron Annular,

HPHT, H2S Rated



Shipyard Delivery December 2009






Leg Length 506 ft



BOP

18-3/4”, 15M, Cameron BOP & 18-3/4” 10M Cameron Annular, HPHT, H2S

Rated26-3/4”, 15M, QBOP & 18-3/4” 3M

Hydril 30” Annular


Aquamarine Driller

Topaz Driller

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Water depth 375 ft - non harsh environment - upgradeable to 400 ft Ö

Larger Cantilever capacity (reach 75 ft x 30 ft load) than most designs Ö

Offset derrick provides greater equivalent cantilever capability Ö

Offline stand building capability Ö

Manual pipe handling (faster) Ö

Large deck area (9,700 ft2) with accommodation in front of forward leg Ö

Ability to jackup with full pre-load - reducing rig moving time Ö

Stronger legs than Mod V Bs (no rack chock required) - reduces punch through issues Ö

Lower spud can bearing pressure reduces leg penetration Ö

18 ¾” 15k BOP stack with integrated handling system Ö

High capacity, high efficiency Caterpillar 3516B Engines (5) and LV system arranged as a four (4) split system Ö

Premium drilling package including 3 x 2,200 HP high pressure mud pumps and integrated diverter Ö

Ability to transit with 300,000 lbs tubular racked in derrick Ö

Advantages of Baker Marine Pacific Class 375 Design

Ultra-Deepwater Bifurcation –Vantage Has High-Spec Drillships

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Platinum Explorer Titanium Explorer Tungsten Explorer

Derrick Load Paths –- 2x Activity- 1.5x Activity ü ü ü

Draw Works (HP) 4,500 6,000 9,000

Hook Load (Tons) 1,000 1,250 1,250

Heave Compensating Xmas Tree Crane (165 t)

Tripsaver ü

BOPS’s- Onboard- RAM’s (*planned)- API SP53/GOM

Compliant

15/6*

*planned for 2015

1 6

ü

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ü

Water Depth- Capable/Outfitted 10,000 / 10,000 12,000 / 10,000 12,000 / 10,000

Variable Load 20,000 MT 20,000 MT 20,000 MT

Accommodation (Beds) 180 180 200

Thrusters 6 x 4.6 Mw / DP3 6 x 5.5 Mw / DP3 6 x 5.5 Mw / DP3

Features

Notable Accomplishments Drilled well in ≈ 9,400 ft of water - Drilling well in 8,800 ft of water- >2 million lb casing load

Fastest shipyard delivery – 27 months from order

DSME Design – Platinum Explorer

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Drilling depth 40,000 ft Ö

Operates in up to 10,000 ft water depth, outfitted for 10,000 ft Ö

Large deck area & 20,000 mt variable deck load Ö

2 million lbs static hook load Ö

Multi-activity drill floor & Offline drill string & casing stand building lay down Ö

6 x 4.6 MW Rolls Royce Thrusters Ö

Aker Solutions Drilling Package Ø Top Drive - DDM 1000 shtØ Rotary Table - 60 ½ x 1000 shtØ Iron Roughnecks - 1 x HRN Online & 1 x Torque Master off line Ø Mud Pumps - 4 x Wirth 2,200 HPØ Drawworks - 4,500 HPØ Shale Shakers - 6 x DP 626

Ö

DP3 system Convert team triple redundant Ö

Xmas tree handling built into moonpool, 150 ton capacity Ö

5 ram Cameron 18 ¾” BOP with bottom ram a dual DP/ test ram10,000 ft Aker Clip Riser Ö

180 man accommodation Ö

20,000 bbl liquid mud system31,700 ft3 bulk mud storage Ö

3 x 85 mt & 1 x 50 mt Liebherr deck cranes Ö

DSME Design – Titanium Explorer

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2.5 million lbs static hook load Ö

Multi-activity drill floor & offline drill string & casing stand building lay down Ö


Aker Solutions Drilling Package Ø Top Drive- MDDM 1250 sht Ø Rotary Table - 60 ½ x 1250 shtØ Iron Roughnecks - 1 x HRN Online & 1 x Torque Master off line Ø Mud Pumps - 4 x Wirth 2,200 HP Ø Drawworks- 6,000 HPØ Shale Shakers - 6 x DP 626

Ö



6 ram Cameron 18 3/4 “ BOP with 3 x Shear Rams - GOM compliant 12,000 ft Aker Clip Riser Ö




DSME Design – Tungsten Explorer

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2.8 million lbs static hook load Ö

Multi-activity drill floor & Offline drill string & casing stand building lay down Ö


Aker Solutions Drilling Package Ø Top Drive - MDDM 1250 shtØ Rotary Table - 75 ½ x 1,250 shtØ Iron Roughnecks - 1 x HRN Online & 1 x Torque Master off line Ø Mud Pumps - 4 x Wirth 2,200 HP Ø Drawworks - 9,000 HPØ Shale shakers - 8 x DP 626

Ö



6 ram Cameron 18 ¾” BOP with 3 x Shear Rams 10,000 ft Cameron Load King Riser 1,000 mt Trip Saver - riser hang off

Ö




Current Worldwide Operations

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Vantage Regional Offices

Client: Warm stackedLabuan MalaysiaPlatinum Explorer

Client: Warm stackedPort Fourchon, South Africa

Titanium Explorer

Singapore

DubaiHouston

Client: Total CongoTungsten Explorer

Client: Warm stackedLabuan Malaysia

Topaz Driller

DSME Shipyard KoreaSonangol Drillships

Client: Warm stackedPointe-Noire Congo

Sapphire Driller

Current operations

Future operations

Client: Total E&P QatarEmerald Driller

Client: CPOC Malaysia/Thailand JDA

Aquamarine Driller

Fleet Status

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Customer Focus – Repeat Business

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National Oil Companies, Majors, Independents Operational excellence equals lower costs equals repeat business

Operations

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PEOPLE

• Competence Training Matrix for all job categories.

• Personnel trained on all the Rig Specific Equipment & Procedures.

• Operational and Safety Procedures in place and understood by crews.

• We hire drilling people with down hole knowledge.

Operations

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TECHNICAL• Onboard user friendly Maintenance & Procurement Tracking System.

• Technical & Operational back up in Vantage base offices.

• Fast response from Vantage and Vendors to any operational issues.

• Top quality capital spares.

• On board spare parts valued at around US$ 3.5 million (on Jackups) and US$ 12 million (on Drillships).

• Vendor agreements in place for fast timely supply of spares.

• Maintenance standards in line with highest industry standards and are simple and robust.

Management System Development

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Management System Structure

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Bringing together all of these basic elements of sound business management provides VANTAGE with a structured and disciplined approach to the way we manage all our business activities.

In the interest of being a premier service provider, VANTAGE has built it’s Management System following the ISM Code, ISO9001:2000, ISO 14001:2004 and OHSAS 18001:2007.

Client Relationships

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CLIENTS – KEEPING THEM HAPPY…….

• We must respect our Clients – at all levels

• Work with them not against them

• Build Personal Relationships at rig and shore base operations levels

• Make sure we reach and exceed their NPT targets

• Work with them to deliver superior performance on their wells

• Act as a Team with the Client

• Above all we have to KEEP IT SIMPLE

Why Choose Vantage

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Our people are focused on “Exceeding Expectations”

• We have a highly successful and proven management team with extensive

operating experience and expertise.

• We are focused on people, process and delivery.

• We have state of the art systems, policies and procedures.

• We have a strong safety culture.

• We have a new, modern and efficient rig fleet.

• We have new rigs being constructed at top class shipyards and

supervised by experienced project teams.

• We are here for the long term.

•We have the financial strength

Vantage Main Offices & Key Contacts

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Bill Thomson, Vice President Marketing and Business Development

Office: +1 281 404 4833 � Mobile: +1 281 414 5397

Email: [email protected]

Alisdair Semple, Director Marketing

Office: +65 6768 6035 � Mobile: +65 9295 9787

Email: [email protected]

Singapore Office

Telephone: +65 6768 6000 Facsimile: +65 6768 6001

Address: 72 Anson Road, #07-01 Anson House, Singapore 079911

Houston Office

Telephone: +1 281 404 4700 Facsimile: +1 281 404 4749

Address: 777 Post Oak Boulevard, Suite 800, Houston, Texas 77056, USA

Dubai Office

Telephone: +971 4 449 3400 Facsimile: +971 4 449 3401

Address: Media City, Business Central Towers, Block B, Office 2003, P.O. Box 282292, Dubai - UAE

introduction to vantage drilling international october...

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