Valaris awarded new contracts, extensions in Brazil, Indonesia

Valaris announced new contracts and extensions with an associated backlog of approximately $65 million, awarded subsequent to issuing the company’s most recent fleet status report on 1 August.

Among them, the company was awarded a one-well contract with BP offshore Brazil for its Valaris DS-15 drillship. The contract is expected to start in late Q1 or early Q2 2024 in direct continuation of the rig’s current program, with TotalEnergies, and has an estimated duration of 80 days. The estimated contract value is approximately $33 million.

TotalEnergies will also exercise an option offshore Brazil for drillship VALARIS DS-15 in direct continuation of the BP contract. The option period is expected to commence in late Q2 or early Q3 2024 and has an estimated duration of 100 days. The operating day rate for the option period is approximately $254,000. The contract backlog for this previously disclosed contract is not included in the $65 million of additional backlog..

Valaris also announced a five-well priced option exercised by BP Indonesia for the Valaris 106 jackup. The option period is expected to start in January 2024, in direct continuation of the existing firm program and has an estimated duration of 365 days. The operating day rate is $85,000 effective from 6 January 2024, increasing to $95,000 from 6 January 2025. The rig is expected to be out of service for approximately 90 days for planned maintenance across Q2 and Q3 2024.