Valaris emerges from bankruptcy

May 3, 2021
Valaris has completed a financial restructuring and issued an update on its offshore drilling rig fleet.

Offshore staff

HAMILTON, Bermuda The Valaris Group has completed its financial restructuring and emerged from Chapter 11.

Its plan of reorganization was approved and confirmed by the United States Bankruptcy Court for the Southern District of Texas on March 3, 2021.

The company eliminated $7.1 billion of debt and secured a $520 million capital injection by issuing $550 million of new secured notes maturing in 2028. As of April 30, 2021, it had $615 million of available cash, $40 million of restricted cash, and $550 million of debt.

President and CEO Tom Burke said: “In the current commodity price environment, we are beginning to see the early signs of a recovery in customer demand following the downturn caused by the COVID-19 pandemic. With the elimination of more than $7 billion of debt and an injection of significant additional capital, Valaris is best positioned to take advantage of opportunities going forward.”

Its offshore drilling rig fleet consists of 11 drillships, five semisubmersibles, and 44 jackups.

The company has also appointed Elizabeth Leykum as chair of the board of directors. The board also consists of Anton Dibowitz (who joins on July 1, 2021), Dick Fagerstal, Joseph Goldschmid, Deepak Munganahalli, Jay Swent, and Thomas Burke.

In addition, Valaris has issued an update on its offshore drilling rig fleet.

Total has awarded the VALARIS DS-15 (Renaissance) a 400-day contract offshore Brazil. The contract is expected to run from June 2021 to August 2022.

Chevron has extended the VALARIS DS-18’s (Relentless) contract in the US Gulf of Mexico by about 320 days from March 2021 to January 2022.

bp has extended the VALARIS DS-12’s contract offshore Angola by approximately 100 days from September 2021 to December 2021.

Shell has extended the VALARIS DS-10’s contract offshore Nigeria extended by about 90 days from March 2021 to June 2021.

Santos has awarded the semisubmersible VALARIS MS-1 a 450-day contract offshore Australia. The contract is expected to run from May 2022 to July 2023.

Eni has extended the semisub VALARIS 8505’s contract offshore Mexico by approximately 80 days from October 2021 to December 2021.

Harbour Energy has awarded the VALARIS JU-121 two-year contract in the UK North Sea. It is expected to run from July 2021 to July 2023.

DNO has awarded the VALARIS JU-247 (Gorilla V) a 400-day contract in the UK North Sea. It is expected to run from May 2021 to June 2022.

OMV has awarded the VALARIS JU-249 (Gorilla VII) a 400-day contract offshore New Zealand. The contract is expected to run from December 2021 to January 2023. The jackup is in the UK being reactivated.

Pertamina has extended the VALARIS JU-67’s contract offshore Indonesia by approximately 400 days from May 2020 to June 2021.

Harbour Energy has awarded the VALARIS JU-120 a one-year contract extension in the UK North Sea. It is expected to run from July 2022 to July 2023.

Equinor has extended the VALARIS JU-291’s (Stavanger) contract offshore Norway by about 280 days from January 2021 to October 2021.

Mubadala has awarded the VALARIS JU-115 a 240-day contract offshore Thailand. The contract is expected to run from February 2021 to September 2021.

Shell has extended the VALARIS JU-122’s contract in the UK North Sea by approximately 205 days from July 2021 to February 2022.

ConocoPhillips has extended the VALARIS JU-292’s (Norway) contract offshore Norway by about 90 days from June 2021 to September 2021.

Spirit Energy has awarded the VALARIS JU-290 (Viking) a 30-day contract offshore Norway. It is expected to run from November 2021 to December 2021.

bp has terminated the VALARIS DS-7’s five-well contract offshore Senegal/Mauritania. The drillship is stacked in Spain.

The VALARIS DPS-1’s contract with Woodside offshore Australia, which was scheduled to be completed in early September 2021, was terminated early and ended in September 2020.

The VALARIS JU-117 (Ralph Coffman), which is contracted to Eni offshore Mexico, is expected to be on a standby rate from January 2021 to September 2021.

The VALARIS JU-107 is expected to start its contract with SapuraOMV offshore Australia in May 2021.

The deepwater drilling spar Mad Dog is expected to be on a standby rate from April 2020 to October 2021, before returning to operating day rate until the end of contract in January 22. The spar is under contract with bp in the US Gulf of Mexico.

The drilling contractor has sold and retired from its fleet three drillships (VALARIS DS-3, DS-5, and DS-6), five semisubmersibles (VALARIS 5004, 8500, 8501, 8502, and 8504), and six jackups (VALARIS JU-71, JU-84, JU-87, JU-88, JU-101, and JU-105).

Also, Saudi Aramco has awarded five-year contract extensions to the ARO Drilling-owned jackups ARO 2001, ARO 2003, ARO 3001, ARO 3002, and ARO 4001 offshore Saudi Arabia. The contracts are expected to run from 1Q 2021 to 1Q 2026.

05/03/2021

Courtesy SBM Offshore / GustoMSC via aukevisser.nl
Courtesy Valeura Energy Inc. Corporate Overview May 2024