New York-listed offshore driller Valaris has won new contracts and contract extensions for its rigs worth approximately $65m.
Valaris said that the addition to the contract backlog excluded lump sum payments such as mobilization fees and capital reimbursements.
The driller won a one-well contract with BP offshore Brazil for the Valaris DS-15 drillship. The contract is expected to commence in the late first quarter or early second quarter of 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 $33m and excludes payments we will receive for mobilization and any additional services.
An exercised priced option with TotalEnergies offshore Brazil won earlier this year for the drillship is now expected to be undertaken in direct continuation of the new BP deal.
The TotalEnergies option period is expected to begin in the late second quarter or early third quarter of 2024 and has an estimated duration of 100 days. The operating day rate for the option period is approximately $254,000. The value of this option period is not included in the $65m figure.
BP also awarded a five-well-priced option in Indonesia for the heavy-duty jack-up 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. The rig is expected to be out of service for approximately 90 days for planned maintenance across the second and third quarters of 2024.