Valaris recorded new contracts and various extensions for four floaters and four jackups in its latest fleet status report, released 1 November. These, along with three others and options that were previously announced, have added approximately $480 million to its backlog over the past fiscal quarter.
Among the new deals listed in the report, the company noted a 250-day contract extension with TotalEnergies offshore Brazil for drillship VALARIS DS-15, with the extension expected to get underway in Q4 2024. It includes two 160-day priced options and one 120-day priced option, as well as increased operating dayrates for each. If exercised, the total contract value will rise to approximately $210 million.
Among those floater options and extensions, Valaris noted a six-month priced option exercised by Petrobras offshore Brazil for drillship VALARIS DS-4 – beginning in January 2024 – as well as a six-month priced contract extension with ExxonMobil offshore Angola for drillship VALARIS DS-9, slated for July 2024.
Of the new drillship deals, a two-well contract with Eni Mexico for semisubmersible VALARIS DPS-5 at a $345,000 dayrate was announced. Given a minimum duration of 110 days, work is expected to start in March 2024.
Additionally, a 55-well plug and abandonment (P&A) with Eni in the UK East Irish Sea for jackup VALARIS 72 was announced, starting in December 2023 with a minimum duration of nearly four years. Until the jackup completes its current contract with Eni in the UK North Sea, VALARIS Norway will step in.
A further two new jackup contracts were recorded as well, including a six-well contract with TAQA on the Porthos Carbon Capture and Storage (CCS) program in the Dutch North Sea for heavy-duty harsh environment jackup VALARIS 123. Work there is expected to begin in Q4 2024 and includes options for up to 10 wells with an estimated duration of 300 days operating at a $142,500 dayrate. Yearly increases are included, with rates scheduled to rise to $152,500 on 1 January 2025 and $162,500 on 1 January 2026.
Another win came via an agreement with Perenco T&T Limited to drill one open-water appraisal well in the TSP block, offshore the southeast coast of Trinidad, with work to commence in the second half of 2024. Taking all of these into account, Valaris’ contract backlog saw an increase of approximately $200 million as of 1 August, up from $3.0 billion to $3.2 billion.