Valaris Ltd. has won contracts from BP PLC and TotalEnergies SE for offshore drilling programs in Brazil and Indonesia, with a total contract portfolio of $65 million.
The Valaris DS-15 platform has been commissioned for a BP well in Brazil. The contract is expected to start in the first half of 2024 with an estimated duration of 80 days, Valaris, an offshore drilling company incorporated in Bermuda, said in a press release. The drillship has already been deployed in the South American country under a previous contract awarded this year by TotalEnergies, according to Valaris’ fleet status report published on August 1.
In another contract, Valaris said: “A previously disclosed exercised price option with TotalEnergies offshore Brazil for the VALARIS DS-15 drillship is now expected to be made as a direct follow-on to the aforementioned BP contract.”
The optional extension is expected to begin in the second or third quarter of next year with an expected run of about 100 days. The value of this contract, which has a daily rate of $254,000, is not included in the $65 million portfolio.
Valaris also expects to execute another optional contract extension from BP Indonesia for a Valaris 106 heavy-duty modern jackup starting in January and with an estimated duration of one year. “The operating day rate is $85,000 effective January 6, 2024, increasing to $95,000 effective January 6, 2025,” Valaris said.
It previously announced that it had won a 12-well contract in West Africa for the Valaris DS-7. The contract, valued at $364 million, is expected to begin in the second quarter of 2024, Valaris said in a July 31 press release.
“This latest award represents the seventh contract awarded to one of our high-quality floats requiring reactivation from mid-2021 and speaks volumes for our proven track record of project execution in reactivating platforms and delivering operational excellence for our customers,” Valaris president and CEO Anton Dibowitz said in a statement about the African contract.
“We continue to take a disciplined approach to rig reactivations and expect this contract to generate significant performance over the initial firm term.”
On July 5, Valaris announced new contracts and contract extensions for drilling in Australia and the US with a total portfolio of $150 million.
The semi-submersible Valaris DPS-5 has been taken advantage of by Anadarko Petroleum Corp. for the US Gulf of Mexico. The contract was due to start in July 2023 for a 60-day operation. After that, Apache Corp was to use the same platform in September 2023 in the same area for at least 110 days. The nine-well contract is for a plugging campaign.
In Australia, two unnamed companies have contracted the Valaris 107 heavy-duty modern jackup. One of the contracts, with a duration of 180 days, is expected to start in the first quarter of 2024 while the other, with a duration of year, will start in October 2024.
Another undisclosed Australian firm has called Valaris 247 for a resilient and ultra-hard environment for a two-bond contract expected to start in mid-2024. The contract has a daily rate of $180,000 for an operation that expected to last 100 days.
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