Valaris adds $466mn to its backlog

Valaris said July 5 it had secured 10 charter contracts and extensions worth $466mn to its backlog.

The drill ship operator has locked down a 540-contract for its Valaris DS-17 rig with Equinor offshore Brazil, due to commence in mind-2023. Equinor's deal is worth around $327mn, including $86mn upfront payment for mobilisation, reactivation and capital upgrade costs. 

Elsewhere, TotalEnergies has exercised its option to extend the term of the Valaris DS-15, which is also being deployed offshore Brazil. Woodside Petroleum has agreed a single-well extension for the Valaris DPS-1 offshore Australia for its Scarborough drilling campaign, as well as a 38-day extension to the same rig to complete two wells in the Enfield plug and abandonment campaign.

A four-year charter contract was awarded to Shell's Brunei unit for the heavy duty modern jackup Valaris 115. The contract is valued at around $159mn and is due to start in April 2023.

Shell also secured a one-well extension for the Valaris 122 rig, extending the charter of the heavy duty harsh environment jackup, for a UK North Sea camapgin, by a further 150 days.

Valaris sold off its Valaris 36 drilling rig to an unnamed drilling contractor, with restricted use provisions, for a $9mn consideration.

The Valaris 107 has been hired on a one-well contract offshore Australia by GB Energy, due to commence in the Q4 2022 or Q1 2021. Valaris will collect an operating rate of $118,000/day on the Valaris 107 contract.

Cantium agreed a 90-day contract for drilling work in the Gulf of Mexico with the standard duty modern jackup Valaris 144. It will pay Valaris $80,000/day in operating fees, starting from Q4 2022.

Valaris 144 will also serve an undisclosed US Gulf of Mexico operator during Q3 2022, under a contract worth around $5mn. This contracted work is expected to last 60 days.