Sanctions Scuttle Lucrative Drilling Contract

Dubai-based offshore drilling contractor Vantage Drilling is reporting that changes in the sanction programs have forced the cancellation of a lucrative contract. The company had not revealed the client or the nature of the assignment which was initially announced in April, subject to completion of the agreement and critically the client having received all necessary state, governmental and administrative approvals.

The project was announced after the completion of a conditional letter of award in April 2025 with the company reporting represented approximately an $80 million job that would require an anticipated 260 days. The COA was good for 90 days. It was initially extended in July for an additional 30 days. 

The contract was completed in September to deploy contract the drillship Platinum Explorer (68,000 GT). The company reported the operations for the approximately 260-day campaign, inclusive of mobilization and demobilization time, were expected to commence in Q1-2026.

A brief announcement was made on October 19 reporting, “The termination is due to changes in economic sanctions applicable to the campaign, rendering the contract execution unlawful and therefore subject to termination.”

No details were offered, but it is well-known that the West has been moving aggressively against the Russian energy sector in particular. Last week, the government of the UK directly sanctioned top Russian oil exporters Rosneft and Lukoil. It had previously sanctioned Russia's Gazprom Neft and Surgutneftegas.

Vantage had reported the contract for the ideal drillship, which was built in 2010. The ultra deepwater drill ship can operate at up to depths of 10,000 feet and has a maximum drilling depth of 40,000 feet. The vessel has accommodations for 180 personnel. It is registered in the Bahamas and currently in the Singapore anchorage.