Offshore driller Valaris has been awarded a number of new contracts and contract extensions, with an associated contract backlog of approximately $480m.
In the floater department, Valaris won three contract extensions for three of its drillships while a brand-new deal was awarded to one of its semisubs.
The driller won a 250-day contract extension with TotalEnergies offshore Brazil for the Valaris DS-15 drillship. The extension period is expected to begin in the fourth quarter of 2024 in direct continuation of the rig’s current program. The total contract value for the firm period, excluding the provision of managed pressure drilling (MPD) and additional services, is $100 million. An additional rate will be charged for MPD and any other additional services when provided.
This contract includes two 160-day priced options and one 120-day priced option, with increased operating day rates for each option period. The total contract value for the option periods if exercised, excluding the provision of MPD and additional services, is approximately $210m.
Petrobras exercised a six-month priced option for the Valaris DS-4 drillship. The six-month option will begin offshore Brazil in January 2024 in direct continuation of the existing firm program. The priced option period has an estimated total contract value of approximately $41m.
The final drillship to get a new deal is the Valaris DS-9. ExxonMobil extended the contract for six months. The six-month extension will begin in July 2024 offshore Angola in direct continuation of the existing firm program.
The Valaris DPS-5 semi-submersible was awarded a two-well contract with Eni offshore Mexico. The contract is expected to begin in March 2024 and has a minimum duration of 110 days. The operating day rate is $345,000, plus a $3m mobilization fee.
As for jack-ups, Valaris won contracts for four of its units. The first of those contracts is a 55-well plug and abandonment contract with Eni in the East Irish Sea for the Valaris 72. The contract is expected to begin in December 2023 and has an estimated duration of 1,346 days. The operating day rate is subject to a market-indexed annual adjustment. The Valaris Norway rig will substitute the Valaris 72 until the latter completes its current contract with Eni in the UK North Sea, which is expected to finish in December 2024.
A six-well contract extension with BP Trinidad for the heavy-duty modern jack-up Valaris 118. The extension period is expected to begin in March 2024, in direct continuation of the existing firm program, and has an estimated duration of one year. The extension period has an estimated total contract value of around $51m.
TAQA hired the Valaris 123 jack-up under a six-well contract on the Porthos Carbon Capture and Storage program in the Dutch North Sea. The contract is expected to begin in the fourth quarter of 2024 and has a minimum duration of 170 days. The contract includes options for up to 10 wells with an estimated total duration of 300 days. The operating day rate is $142,500, increasing to $152,500 effective January 1, 2025, and $162,500 effective January 1, 2026.
The heavy-duty ultra-harsh environment jack-up Valaris 249 has been contracted by Perenco to drill one open-water appraisal well in the TSP block, offshore the southeast coast of Trinidad. The contract is expected to begin in the second half of 2024, in direct continuation of the rig’s current program with another operator.
Contract backlog, which increased to approximately $3.2bn from around $3.0bn as of August 1, 2023, excludes lump sum payments such as mobilization fees and capital reimbursements.
