Valaris Adds $275M Worth of Offshore Drilling Contracts to Backlog

Offshore drilling firm Valaris Limited said Thursday it had secured $275 million worth of drilling rig contracts since its most recent fleet status report was issued on October 31, 2022. Valaris won contracts and contract extensions for one drillship and six jack-up rigs.

In Egypt, as first reported on November 21, Valaris secured a four-well contract with BP for its Valaris DS-12 drillship.

The contract is expected to start in the third quarter or early fourth quarter of 2023. It will last for an estimated 20 days. The total contract value, including a mobilization fee, is expected to be $136 million.  

In the Dutch North Sea, oil and gas company Kistos has awarded a 90-day contract for the Valaris 123 heavy-duty harsh environment jack-up. 

The contract began in November 2022. A system called selective catalytic reduction (SCR) will be used on the rig to cut NOx emissions significantly.

Also, ONE-Dyas has awarded a 195-day contract for the same rig in the Dutch North Sea, starting in the first quarter of 2023. For this contract, too, the Valaris 123 rig will use the SCR system to reduce NOx emissions.

In the UK North Sea, Valaris has secured contracts with Shell and Perenco for two jack-up rigs.

Shell has awarded it a 210-day for the Valaris 121 jack-up rig. The $25 million contract is expected to start in the fourth quarter of 2023. Shell has four priced options included in the contract.

Further, Perenco has hired the Valaris 247 jack-up rig on a 180-day contract. The contract, in the UK North Sea, is expected to start in the first quarter of 2023. It includes a 60-day extension option. Valaris did not share financial details for the Perenco deal.

In the U.S. Gulf of Mexico, Cantium exercised a 90-day extension for the Valaris 144 jack-up rig. 

The option period is set to start in March 2023, and the operating day rate is $85,000.

In Saudi Arabia, Valaris has also secured two three-year contract extensions with drilling company ARO Drilling for the Valaris 147 and Valaris 148 jack-up rigs.

The extension period for the Valaris 147 jack-up starts this month, while the extension for the Valaris 148  starts in February 2023.

Under the shareholder agreement, Valaris will bareboat charter the jack-up duo to ARO Drilling.