Valaris has issued a Fleet Status Report that provides the current status of the Company’s fleet of offshore drilling rigs along with certain contract information for these assets.
Contract Backlog
- Valaris has been awarded the following new contracts and contract extensions, with associated contract backlog of approximately $480 million, subsequent to issuing its most recent fleet status report on August 1, 2023. Contract backlog excludes lump sum payments such as mobilization fees and capital reimbursements.
- Contract backlog increased to approximately $3.2 billion from approximately $3.0 billion as of August 1, 2023.
Floaters
- 250-day contract extension with TotalEnergies offshore Brazil for drillship VALARIS DS-15. The extension period is expected to commence in the fourth quarter 2024 in direct continuation of the rig's current program. The total contract value for the firm period, excluding the provision of MPD and additional services, is $100 million. An additional rate will be charged for MPD and any other additional services when provided. The contract includes two 160-day priced options and one 120-day priced option, with increased operating day rates for each option period. The total contract value for the option periods if exercised, excluding the provision of MPD and additional services, is approximately $210 million. An additional rate will be charged for MPD and any other additional services when provided.
- Six-month priced option exercised by Petrobras offshore Brazil for drillship VALARIS DS-4. The six-month option will commence in January 2024 in direct continuation of the existing firm program. The priced option period has an estimated total contract value of approximately $41 million.
- Six-month priced contract extension with ExxonMobil offshore Angola for drillship VALARIS DS-9. The six-month extension will commence in July 2024 in direct continuation of the existing firm program.
- Two-well contract with Eni Mexico S. de R.L. de C.V. offshore Mexico for semisubmersible VALARIS DPS-5. The contract is expected to commence in March 2024 and has a minimum duration of 110 days. The operating day rate is $345,000, plus a $3 million mobilization fee.
- One-well contract with BP offshore Brazil for drillship VALARIS DS-15. The contract is expected to commence in late first quarter or early second quarter 2024 in direct continuation of the rig's current program, with TotalEnergies, and has an estimated duration of 80 days. The estimated contract value is approximately $33 million and excludes payments we will receive for mobilization and any additional services.
- A previously disclosed exercised priced option with TotalEnergies offshore Brazil for drillship VALARIS DS-15 is now expected to be undertaken in direct continuation of the aforementioned BP contract. The option period is expected to commence in late second quarter or early third quarter 2024 and has an estimated duration of 100 days. The operating day rate for the option period is approximately $254,000. The contract backlog for this previously disclosed contract is not included in the $480 million of additional backlog mentioned above.
Jackups
- 55-well plug and abandonment (P&A) contract with Eni in the East Irish Sea (UK) for standard duty legacy jackup VALARIS 72. The contract is expected to commence in December 2023 and has an estimated duration of nearly four years (1,346 days). The operating day rate is subject to a market-indexed annual adjustment. VALARIS Norway will substitute for VALARIS 72 until VALARIS 72 completes its current contract with Eni in the UK North Sea, which is expected to finish in December 2024.
- Six-well contract extension with BP Trinidad for heavy duty modern jackup VALARIS 118. The extension period is expected to commence in March 2024, in direct continuation of the existing firm program, and has an estimated duration of one year. The extension period has an estimated total contract value of approximately $51 million.
- Six-well contract with TAQA on the Porthos Carbon Capture and Storage (CCS) program in the Dutch North Sea for heavy duty harsh environment jackup VALARIS 123. The contract is expected to commence in fourth quarter 2024 and has a minimum duration of 170 days. The contract includes options for up to 10 wells with an estimated total duration of 300 days. The operating day rate is $142,500, increasing to $152,500 effective January 1, 2025 and $162,500 effective January 1, 2026.
- Heavy duty ultra-harsh environment jackup VALARIS 249 has been contracted by Perenco T&T Limited to drill one open-water appraisal well in the TSP block, offshore the southeast coast of Trinidad. The contract is expected to commence in second half 2024, in direct continuation of the rig's current program with another operator.
- Five-well priced option exercised by BP Indonesia for heavy duty modern jackup VALARIS 106. The option period is expected to commence in January 2024, in direct continuation of the existing firm program and has an estimated duration of 365 days. The operating day rate is $85,000 effective from January 6, 2024, increasing to $95,000 from January 6, 2025. As previously disclosed, the rig is expected to be out of service for approximately 90 days for planned maintenance across second quarter and third quarter 2024.
New Disclosure: bolded text signifies items that have not previously been disclosed
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Source: Valaris
