| Work Detail |
Offshore driller Valaris has reported several new contracts and contract extensions, with an associated contract backlog of approximately $480m.
The driller was awarded two extension options for a drillship pair. The first is a six-month option exercised by ExxonMobil for the Valaris DS-9. Work under the extension will begin in January 2025 in direct continuation of the existing firm program. The 2015-built drillship will be working off Angola. The previous extension option for the rig was exercised in late 2023 and is set to last from July 2024 until the beginning of the most recent extension.
The other drillship to win an extension was the Valaris DS-17. The 60-day priced option was exercised by Equinor offshore Brazil and will begin in May 2025 in direct continuation of the existing firm contract. The operating day rate for the priced option period is approximately $497,000 including MPD and additional services.
In the jackup department, the Valaris 144 rig won a 13-well contract offshore Angola from an undisclosed operator. The contract is expected to begin in the second quarter of 2025 and has an estimated duration of between 730 days and 770 days. The contract is supposed to end in May 2027. The total contract value is estimated to be between $149m and $156m, including a mobilization fee from the US Gulf of Mexico.
A one-well-priced option was exercised by TotalEnergies in the UK North Sea for the heavy-duty harsh environment jackup Valaris Stavanger. The well has an estimated duration of 30 days and will be added to the existing firm program, increasing the total contract value by approximately $4m. The contract will now run from May 2024 until May 2025. The total contract value of the deal is approximately $52m including minor rig modifications. TotalEnergies also has two priced options with an estimated duration of 270 days each.
Valaris also won three-year contract extensions with BP in the US Gulf of Mexico for the managed spar drilling rig Mad Dog and the Thunder Horse semisubmersible. The contract extensions were effective on January 27, 2024. The three-year extension periods have a combined estimated total contract value of approximately $259 million. Contracts for both rigs are now set to last until January 2027.
The company also had one contract suspended. Namely, the suspension for the Valaris 92 legacy jackup is estimated to take effect from February 26, 2025. The contract with Harbour Energy was previously scheduled to end in February 2026. The dayrate for the rig is $95,000. The contract suspension resulted in a reduction to the contract backlog of approximately $35m.
As a result of the new deals and the backlog reduction due to the jackup suspension, the contract backlog of the company has increased to approximately $4bn. The backlog excludes lump sum payments such as mobilization fees and capital reimbursements. |
