Valaris, the world’s largest offshore drillship owner, announced that it has signed a series of new and extended contracts with ExxonMobil, Equinor, TotalEnergies, BP and an undisclosed operator in Angola, Brazil, the UK North Sea and the US Gulf of Mexico, to increase its order book.
According to Valaris’ fleet status report released on Monday (May 1), the company’s floater and jack-up fleet has been awarded new contracts and extensions worth approximately $480 million (excluding one-off payments such as mobilization fees and capital reimbursements). This is the latest news following the release of the last fleet status report in February 2024, when the company disclosed new and extended contracts worth approximately $1.2 billion.
Two floaters awarded contract extensions
ExxonMobil has announced the exercise of a six-month pricing option on the Valaris DS-9 drillship in Angolan waters, which is due to commence construction in January 2025 and is a direct continuation of an existing fixed program. ExxonMobil also has two six-month options. Built by Samsung Heavy Industries and delivered in 2015, the drillship is of a Samsung 78K design and can accommodate 200 people and operate in water depths of 12,000 feet with a maximum drilling depth of 40,000 feet.
Valaris has entered into a 60-day charter contract with Equinor for the drillship Valaris DS-17, with performance commencing in May 2025, in direct continuation of the existing firm contract. The operating day rate for the pricing option period is approximately $497,000 (including MPD and additional services). The drillship is of GustoMSC P10000 design, built by HD Hyundai Heavy Industries and can accommodate up to 210 persons.
Contracts awarded for two jack-up drilling rigs
Valaris has signed a contract with an undisclosed operator for operations in the Angolan waters for the deployment of the Valaris 14 jack-up rig.The new contract is expected to begin in the second quarter of 2025, with an estimated duration of 730 to 770 days. The total value of the contract is calculated to be between $149 million and $156 million, including mobilization fees for Talos’ work in the US Gulf of Mexico. The rig can accommodate 120 people and has a maximum drilling depth of 35,000 feet.
Total Energy has decided to adopt a one-well priced option for the Valaris Stavanger, a heavy-duty harsh environment jack-up rig, in the UK North Sea. The expected duration is 30 days and is expected to be added to the company’s existing program, increasing the total contract value by approximately $4 million.
The total value of the latest contract is approximately $52 million, including minor modifications to the rig. In addition, TotalEnergies has two 270-day pricing options. The rig, which is of Keppel FELS N design, was completed and delivered in 2011 and can accommodate up to 140 people and has a maximum drilling depth of 35,000 feet.
BP has extended the contracts for the Valaris-managed deepwater rig Mad Dog and deepwater semi-submersible rig Thunder Horse in the U.S. Gulf of Mexico for three years, effective January 27, 2024, with a total value estimated at approximately $259 million. The former is valued at approximately $106 million and the latter at approximately $153 million.