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Valaris scraps three young drillships originally ordered for $2.25bn

Offshore driller Valaris has sent three drillships, all less than ten-years-old, to the scrapyard amid continued uncertainty in the offshore market.

According to Clarksons, the company has sold the 2010-built Valaris DS-3, the 2011-built Valaris DS-5 and the 2012-built Valaris DS-6 to a scrapyard in Turkey. VesselsValue data shows the demolition value of the drillships is around $264 per ltd. Valaris bought the vessels from Pride International in a fleet takeover package deal in 2011. The vessels were originally ordered at a price of $725-$750m each.

Valaris has suffered a series of contract cancellations and reduced rates for its drilling units this year as oil and gas operators review their offshore exploration strategies to cope with the impact brought by the outbreak of coronavirus.

In April, Reuters reported that Valaris started negotiations with creditors on the options for a possible bankruptcy filing.

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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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