Offshore drilling company Valaris has secured a multi-year contract for drillship VALARIS DS-4 with Petrobras offshore Brazil following a competitive bidding process.
The a 1,064-day contract is anticipated to start late in the fourth quarter 2024, following completion of the rig’s current contract with Petrobras, which is expected to finish in September 2024.
Based on the firm contract term, the total contract value is approximately $519 million, inclusive of mobilization fees and additional services.
Upon completion of its current contract, the rig is expected to be out of service for approximately 90 days to complete customer-required capital upgrades prior to commencement of the new contract.
“We are delighted to have secured further work for drillship VALARIS DS-4 with Petrobras for their upcoming Búzios program and we look forward to continuing to partner with Petrobras on their programs offshore Brazil, a market where we expect to see continued growth over the next several years.
“We have previously stated that we expect Valaris’ earnings and cash flow to increase meaningfully as rigs are recontracted at market rates,” said Valaris’ President and Chief Executive Officer Anton Dibowitz.