Valaris secures new contracts in North Sea, Gulf of Mexico
Valaris announced new contracts and contract extensions, with expected associated contract backlog of approximately $275 million. The contract backlog excludes lump sum payments such as mobilization fees and capital reimbursements.
Among the new contracts awarded were a 90-day contract with Kistos in the Dutch North Sea for the VALARIS 123 jackup. The contract commenced in November 2022. VALARIS 123 will utilize its selective catalytic reduction (SCR) system during the contract with Kistos to significantly reduce NOx emissions from the rig. The VALARIS 123 was also part of a 195-day contract Valaris secured with ONE-Dyas in the Dutch North Sea. The contract is expected to commence in Q1 2023 in direct continuation of the rig’s current contract. Like with the Kistos contract, the VALARIS 123 will utilize its selective catalytic reduction (SCR) system during the contract with ONE-Dyas to reduce NOx emissions from the rig.
Valaris was also awarded a 210-day contract with Shell in the UK North Sea for the VALARIS 121 jackup. The contract is expected to commence early in Q4 2023. The expected total contract value is over $25 million. The contract has four priced options. The company received 180-day contract with Perenco in the UK North Sea for heavy duty ultra-harsh environment jackup VALARIS 247. The contract is expected to commence in Q1 2023. The contract has one 60-day option.
Valaris won a 90-day option exercised by Cantium in the US Gulf of Mexico for the VALARIS 144 jackup. The option period is expected to commence in March 2023 in direct continuation of the existing contract. The operating day rate for the option period is $85,000.
ARO Drilling, a joint venture between Valaris and Aramco, received a three-year contract extension offshore Saudi Arabia for the VALARIS 147 jackup. The extension period is expected to commence in December 2022 in direct continuation of the existing contract. In accordance with the terms of our shareholder agreement, Valaris will bareboat charter VALARIS 147 to ARO.
ARO Drilling also netted a three-year contract extension offshore Saudi Arabia for the VALARIS 148 jackup. The extension period is expected to commence in February 2023 in direct continuation of the existing contract. Valaris will bareboat charter VALARIS 148 to ARO.
