Valaris Lands $150 Million in Offshore Drilling Contracts and Extensions

Offshore drilling contractor Valaris said Wednesday it had recently secured offshore drilling rig contract wins and extensions worth about $150 million in total, the figure which does not include lump sum payments like mobilization fees and capital reimbursements.

One of these contracts is a two-well agreement with Anadarko Petroleum Corporation, a subsidiary of Occidental, in the U.S. Gulf of Mexico.  

The semi-submersible VALARIS DPS-5 will be employed for at least 60 days to execute the project. The contract, valued at around $22 million, implying a dayrate of $366,667 for the 2012-built drilling rig, is set to start in July 2023.

Also in the U.S. Gulf of Mexico, Valaris won a nine-well contract for a plug and abandonment campaign with Apache.

The campaign, also using the semi-submersible VALARIS DPS-5, is expected to start in September 2023 and last at least 110 days. Financial details for the offshore rig's contract with Apache were not disclosed. The rig most recently worked for Eni, on the Mexican side of the Gulf of Mexico, on a dayrate of $313,500.

Jack-up rig contracts in Australia

Additionally, Valaris secured a 180-day contract with an undisclosed operator offshore Australia for its heavy-duty modern jackup rig, VALARIS 107. Set to start in the first quarter of 2024, and the contract guarantees a minimum duration of 180 days and an operating day rate of $150,000. 

Moreover, another undisclosed operator in Australia has signed a one-year contract with Valaris for the deployment of the already mentioned jack-up rig VALARIS 107. The contract is scheduled to begin in October 2024, but the contract value was not disclosed.

Lastly, Valaris secured a two-well contract with a major Australian operator for its heavy-duty ultra-harsh VALARIS 247.

With an estimated duration of 100 days, the contract is expected to start in early to mid-2024. Valaris will receive an operating day rate of $180,000 for the project and will also be compensated with a mobilization and demobilization fee to cover operating costs during rig transit.

The Valaris 247 is currently on contract with Perenco in the UK.

In other offshore drilling news on Wednesday, Transocean secured a $172 million drilling contract for one semi-submersible drilling rig in Norway. Read more here.

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