Valaris hit by contract terminations and reduced rates

Valaris hit by contract terminations and reduced rates

Offshore driller Valaris has suffered a series of contract terminations and reduced rates for its drilling units amid continued uncertainty in the offshore market.

According to the company’s latest fleet status report, drillship Valaris DS-7‘s contract for operations offshore Ghana from April to mid May has been terminated by an undisclosed customer while the contract of semi-submersible rig Valaris 5004 was terminated by Mellitah in mid April.

The latest contract terminations came after the company suffered contract terminations for drillship Valaris DS-8 and jackup rig Valaris JU-109 last month.

Valaris has also accepted reduced rates for a number of drilling units including drillship Valaris DS-10 and jackup rigs Valaris JU-120, Valaris JU-92 and Valaris JU-72.

Additionally, the company is in the process of stacking four drilling units Valaris DS-4, Valaris DS-11, Valaris DS-17 and Valaris 8504.

In the meantime, the company reported an contract extension with Cox for its jackup rig Valaris JU-87. The contract has been extended to May for another well with an estimated duration of 30 days.

This week, Reuters reported that Valaris started negotiations with creditors on the options for a possible bankruptcy filing due to a financial crisis.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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