Valaris DS-4 drillship; Source: Valaris

Valaris drillship staying in Brazil for multi-year gig with Petrobras

Offshore drilling contractor Valaris has tucked a long-term contract in Brazil under its belt for one of its drillships, which will carry out operations for the country’s state-owned energy giant, Petrobras.

Valaris DS-4 drillship; Source: Valaris

The 1,064-day contract with Petrobras in Brazil for the Valaris DS-4 drillship comes after a competitive bidding process. Valaris explains that the total contract value is approximately $519 million, inclusive of mobilization fees and additional services, based on the firm contract term.

Anton Dibowitz, Valaris’ President and Chief Executive Officer, commented: “We are delighted to have secured further work for drillship Valaris DS-4 with Petrobras for their upcoming Buzios program and we look forward to continuing to partner with Petrobras on their programs offshore Brazil, a market where we expect to see continued growth over the next several years.

“We have previously stated that we expect Valaris’ earnings and cash flow to increase meaningfully as rigs are re-contracted at market rates. This contract award for Valaris DS-4 is a great example of how we are executing on the operating leverage inherent in our business, with the rig repricing from a day rate in the low $200,000s to an effective day rate in the high $400,000s.”

The drillship’s new contract with Petrobras is anticipated to start late in the fourth quarter of 2024, following the completion of the rig’s current contract with the Brazilian giant, which is expected to finish in September 2024. Upon completion of its current assignment, the rig is expected to be out of service for around 90 days to complete customer-required capital upgrades before beginning the new contract.

The current development concept for the Búzios deepwater field encompasses 11 platforms. At the moment, six units are under construction, including the FPSO Almirante Tamandaré, P-78, P-79, P-80, P-82, and P-83. Petrobras is the operator of the field, with an 88.99% stake with CNOOC (7.34%) and CNODC (3.67%) as partners.

The 2010-built Valaris DS-4 drillship is of Samsung 96k design. It was constructed at Samsung Heavy Industries, Geoje, South Korea. With a maximum drilling depth of 40,000 ft, the rig is capable of operating in water depths of 12,000 ft and can accommodate 200 people.

The new contract award comes days after the much-anticipated news about the purchase and delivery of two newbuild drillships was confirmed by Valaris. The offshore drilling player has expanded its fleet by taking delivery of these newbuild drillships from Daewoo Shipbuilding Marine Engineering (DSME), after exercising the option to buy them.

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The rigs will be mobilized from South Korea to Las Palmas, Spain, where they will be stacked until they are contracted for work.



𝐃𝐨 𝐲𝐨𝐮 𝐰𝐚𝐧𝐭 𝐭𝐨 𝐠𝐫𝐚𝐛 𝐭𝐡𝐞 𝐚𝐭𝐭𝐞𝐧𝐭𝐢𝐨𝐧 𝐨𝐟 𝐲𝐨𝐮𝐫 𝐭𝐚𝐫𝐠𝐞𝐭 𝐚𝐮𝐝𝐢𝐞𝐧𝐜𝐞 𝐢𝐧 𝐨𝐧𝐞 𝐦𝐨𝐯𝐞? 𝐋𝐨𝐨𝐤 𝐧𝐨 𝐟𝐮𝐫𝐭𝐡𝐞𝐫 𝐭𝐡𝐚𝐧 𝐎𝐟𝐟𝐬𝐡𝐨𝐫𝐞 𝐄𝐧𝐞𝐫𝐠𝐲! 𝐎𝐮𝐫 𝐜𝐨𝐧𝐭𝐞𝐧𝐭 𝐢𝐬 𝐫𝐞𝐚𝐝 𝐛𝐲 𝐭𝐡𝐨𝐮𝐬𝐚𝐧𝐝𝐬 𝐨𝐟 𝐩𝐫𝐨𝐟𝐞𝐬𝐬𝐢𝐨𝐧𝐚𝐥𝐬 𝐞𝐧𝐠𝐚𝐠𝐞𝐝 𝐢𝐧 𝐨𝐢𝐥 & 𝐠𝐚𝐬, 𝐦𝐚𝐫𝐢𝐭𝐢𝐦𝐞, 𝐨𝐟𝐟𝐬𝐡𝐨𝐫𝐞 𝐰𝐢𝐧𝐝, 𝐠𝐫𝐞𝐞𝐧 𝐦𝐚𝐫𝐢𝐧𝐞, 𝐡𝐲𝐝𝐫𝐨𝐠𝐞𝐧, 𝐬𝐮𝐛𝐬𝐞𝐚, 𝐦𝐚𝐫𝐢𝐧𝐞 𝐞𝐧𝐞𝐫𝐠𝐲, 𝐚𝐥𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐯𝐞 𝐟𝐮𝐞𝐥𝐬, 𝐬𝐡𝐢𝐩𝐩𝐢𝐧𝐠, 𝐚𝐧𝐝 𝐨𝐭𝐡𝐞𝐫 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐢𝐞𝐬 𝐨𝐧 𝐚 𝐝𝐚𝐢𝐥𝐲 𝐛𝐚𝐬𝐢𝐬.

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