Valaris Rakes In Over Two Dozen Rig Deals

Valaris Rakes In Over Two Dozen Rig Deals
Valaris has published a fleet status report and showed all its brand-new contracts and contract extensions for its rigs.

Offshore driller Valaris has published a fleet status report and showed all its brand-new contracts and contract extensions for its rigs.

Valaris said that it won five deals for its drillships and semisubmersibles. Of the five, three went to drillships while two went to semisubmersibles.

The largest deal was a 540-day contract with Equinor offshore Brazil for the Valaris DS-17 drillship. The rig will be reactivated for this contract, which is expected to begin in mid-2023. The total contract value is approximately $327 million, including an upfront payment totaling approximately $86 million for mobilization costs, capital upgrades, and a contribution towards reactivation costs. The remaining contract value relates to the operating day rate and additional services, including managed pressure drilling (MPD), ROV, casing running, slop treatment, and cuttings handling.

The Brazilian arm of TotalEnergies signed a contract extension for the Valaris DS-15 drillship. The option is in direct continuation of the current firm program.

The final drillship that won work was the Valaris DS-10. Shell Nigeria Exploration and Production Company exercised a six-month option for work offshore Nigeria – the deal is also in direct continuation of the existing firm program.

The semisubmersible Valaris DPS-1 won a two-well contract extension with Woodside offshore Australia. The two-well extension has an estimated duration of 38 days and will be in direct continuation of the existing firm program for Woodside's Enfield plug and abandonment campaign which should be 18 wells in total.

Another deal with Woodside, also off Australia, is a one-well contract extension for the semisubmersible Valaris DPS-1. The one-well extension has an estimated duration of 60 days and will be executed within Woodside's Scarborough development campaign sequence.

Jack-ups Bring In Nine Deals

Shell hired the heavy-duty modern jack-up Valaris 115 on a four-year deal for work offshore Brunei. The contract is expected to begin in April 2023 and has a total contract value of around $159 million.

A three-year bareboat charter agreement with ARO Drilling was signed for a standard duty modern jack-up Valaris 141. The agreement is expected to start in August 2022.

A four-well contract extension with BP offshore Indonesia went to a heavy-duty modern jack-up Valaris 106. The extension has an estimated duration of 360 days and will be in direct continuation of the existing firm program.

Another deal from Shell went to the heavy-duty harsh environment jack-up Valaris 122, a one-well contract extension for work in the UK North Sea. The one-well extension has an estimated duration of 150 days and will be in direct continuation of the existing firm program.

An undisclosed operator in the U.S. Gulf of Mexico hired the Valaris 144 rig for a four-well contract. The contracted work is expected to take place during the third quarter of 2022 with an estimated duration of 60 days and an estimated contract value of approximately $5 million.

Another deal for the Valaris 144 was a one-well contract awarded by Talos – also for U.S. Gulf of Mexico work. The contract is expected to begin in the fourth quarter of 2022 with a minimum duration of 30 days. The operating rate is $85,000 per day.

Valaris 144 did a hat-trick of deals with the last one being a 90-day contract with Cantium in the U.S. Gulf of Mexico. The contract is expected to begin in the fourth quarter of 2022. The operating rate is $80,000 per day.

Valaris 107 won two deals. The first one is a one-well option exercised by an undisclosed operator offshore Australia. The one-well option has an estimated duration of 31 days and will be in direct continuation of the existing firm program. The operating rate is $112,000 per day.

The second deal for the rig was a one-well contract with GB Energy off Australia. The contract is expected to begin either late in the fourth quarter of 2022 or early in the first quarter of 2023 with an estimated duration of 20 days. The operating rate is $118,000 per day.

The company did receive one contract termination and sold one rig to another drilling company. Namely, the contract awarded to the Valaris DS-11 drillship was terminated with effect at the end of June. The total contract backlog as of May 2, 2022, included approximately $428 million related to this contract. As for the rig sale, the Valaris 36 was sold for $9 million.

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


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