Vessels

Valaris inks three offshore drilling contracts

March 6, 2023

Valaris Ltd. has secured two drillship contracts and one contract for an offshore jackup.

Offshore staff

HAMILTON, Bermuda — Valaris Ltd. has secured three new offshore drilling contracts, two of which are for drillships and one for a jackup.

A three-year contract is with Petrobras for the VALARIS DS-8 drillship. The rig will be reactivated for this contract. The total contract value is about $500 million, including a $30 million mobilization fee.

A 100-day contract with a TotalEnergies affiliate is for the VALARIS DS-12 drillship. The contract is expected to begin in second-quarter 2023.

Lastly, a 70-day contract with Beach Energy offshore New Zealand is for heavy-duty modern jackup VALARIS 107. The contract is expected to start in third-quarter 2023. The total contract value is about $26 million.

Following the reactivation of VALARIS DS-17 and DS-8, Valaris will have 10 floaters working across the Golden Triangle, including four drillships in Brazil, which is a market where the company expects to see continued growth over the next several years.

Valaris' first-quarter 2023 contract drilling expense is expected to increase by about $5 million to $385 million to $395 million.

Full-year 2023 revenues are anticipated to be $1.8 billion to $1.9 billion, Valaris stated, and contract drilling expense is expected to increase by about $60 million to $1.49 billion to $1.59 billion. Full-year 2023 capex is expected to increase by $60 million to $320 million to $360 million.

03.06.2023