Valaris Hot Streak Continues With Two More Rig Deals

Offshore drilling contractor Valaris has continued with its strong start to 2022 with two one-well contracts with Murphy Oil for a semi-submersible drilling rig.

Valaris said that the contracts were awarded to the Valaris DPS-5 rig, previously known as Valaris 8505, by subsidiaries of Murphy Oil.

The first contract is in the U.S. part of the Gulf of Mexico and is expected to start in the third quarter of 2022 with a minimum duration of 30 days. This contract has a one-well option with an estimated duration of 90 days.

The second contract is for work offshore Mexico and will start in direct continuation of the first contract and has an estimated duration of 60 days.

In 2022, Valaris has already been awarded deals for work in the U.S. Gulf of Mexico, Australia, the UK North Sea, and Saudi Arabia – one of those being for the DPS-5 rig.

Namely, the offshore drilling was awarded a one-well contract Valaris DPS-5 with Kosmos Energy in the U.S. Gulf of Mexico. The deal will start work in February 2022 with an estimated duration of 105 days. According to the company’s fleet status report, the rig previously worked with Eni offshore Mexico from October 2021.

The rig has been quite successful lately as it found oil in the Sayulita Exploration Prospect in Block 10 in the mid-deep water of the Cuenca Salina Sureste Basin, offshore Mexico for Eni. The rig also found oil while working for Lukoil within the Yoti West structure at Block 12 also off Mexico.

In January, Valaris has also been awarded a one-well contract by Western Gas. It was awarded to the semi-submersible Valaris MS-1. The contract is expected to begin in the first quarter of 2022 offshore Australia with an estimated duration of 25 days.

The UK North Sea contract was awarded by Centrica Storage for the Valaris Norway heavy-duty ultra-harsh environment jack-up rig. It will work on a six-well plug and abandonment campaign expected to start in the third quarter of 2022 with an estimated duration of 100 days.

Valaris secured another U.S. Gulf of Mexico one-well contract with an undisclosed operator for the Valaris 144 standard-duty modern jack-up. The contract is expected to begin in the first quarter of 2022 with a minimum duration of 68 days.

The first contract of 2022 Valaris won from ARO Drilling. The rigs were awarded three-year extensions to their bareboat charter agreements upon completion of their existing agreements with ARO Drilling on December 31, 2021.

To contact the author, email bojan.lepic@rigzone.com