Valaris Announces Several Oil Major Deals

Valaris Limited (NYSE: VAL) has announced several new contracts and contract extensions with a variety of major oil and gas companies.

TotalEnergies EP Brasil exercised an option offshore Brazil for drillship Valaris DS-15, Valaris revealed, adding that the option has an estimated duration of 100 days and will be in direct continuation of the existing firm term.

In addition, Valaris outlined that Saudi Aramco had granted a 292-day contract extension for standard duty modern jackup Valaris 76, a 204-day contract extension for standard duty legacy jackup Valaris 54, and a 142-day contract extension for heavy duty modern jackup Valaris 108. All extensions with Saudi Aramco are in direct continuations of existing contracts, Valaris highlighted.

BP was also said to have exercised a four-well option offshore Trinidad for heavy duty modern jackup Valaris 118. The four-well option has an estimated duration of 200 days and will be in direct continuation of the existing firm program, Valaris noted, adding that the four-well option has a total contract value of approximately $24 million.

In its previous contract award and fleet status update, which was published on September 1, Valaris also announced several deals. These included a three-well contract with Eni Mexico S. de R.L. de C.V. offshore Mexico for semisubmersible Valaris DPS-5, a four-well contract extension with a duration in the region of 500 days with Shell in the UK North Sea for heavy duty harsh environment jackup Valaris 122, and a one-well contract with an undisclosed operator offshore Australia for heavy duty modern jackup Valaris 107. Valaris also revealed in its previous update that a one-well option was exercised by DNO in the UK North Sea for heavy duty ultra-harsh environment jackup Valaris 247.

In its second quarter, and latest, financial results statement, Valaris reported “continued strong operational performance”, highlighting 97 percent revenue efficiency during the period. Valaris revealed in the statement that its income during the quarter was $113 million, its revenues were $413 million, and its contract backlog added $560 million.

Valaris was created by the combination of two leading offshore drillers with decades of experience and knowledge to create the most capable, effective and highest performing offshore drilling service company in the world, Valaris’ website notes.

To contact the author, email andreas.exarheas@rigzone.com