Valaris secures $285 million in revenue backlog with new rig contracts

Offshore drilling contractor Valaris has been awarded new contracts and extensions for its drilling rigs with an associated revenue backlog of $285 million. One of the jack-up rigs has secured a 21-well contract with ExxonMobil in the U.S. Gulf of Mexico. 

Valaris said in an update on Monday that the contract for the drillship Valaris DS-18 (Relentless) had been extended due to the exercise of a one-well priced option with EnVen in the U.S. Gulf of Mexico, with an estimated duration of 45 days from February 2020 to March 2020.

According to an estimate by Bassoe Offshore, the dayrate for the drillship’s contract with EnVen is $180,000.

The rig has also been awarded a two-well contract with an undisclosed operator in the U.S. Gulf of Mexico that is expected to start in June 2020, with an estimated duration of 180 days. Bassoe’s estimate for this deal is $200,000.

The drillship Valaris DS-15 (Renaissance) has been awarded a one-well contract with Eni in the U.S. Gulf of Mexico that is expected to start in November 2019, with an estimated duration of 30 days.

The rig has also been awarded a two-well contract with CNOOC offshore Mexico that is expected to start in April 2020, with an estimated duration of 160 days.

Bassoe estimates that the dayrate for the Eni contract will be $180,000 and $190,000 for the CNOOC contract.

Contracts for jack-up rigs 

The contract for the jack-up Valaris JU-292 (Norway) has been extended due to the exercise of a six-well priced option with ConocoPhillips offshore Norway, with an estimated duration of 300 days from early May 2020 to late February 2021. Bassoe estimates the dayrate for this contract will be $185,000.

The contract for the jack-up Valaris JU-290 (Viking) to provide accommodation services with Repsol offshore Norway has been extended by approximately 50 days from early February 2020 to late March 2020. Bassoe’s dayrate estimate is $110,000.

The contract for the jack-up Valaris JU-249 (Gorilla VII) with Chrysaor in the North Sea has been extended by one year from November 2019 to November 2020. When it comes to the dayrate, Bassoe estimates it will be $95,000.

The Valaris JU-144 jack-up rig (EXL II) has been awarded a 12-well contract with Eni offshore Mexico that is expected to begin in April 2020, with an estimated duration of two years. The rig’s dayrate estimate by Bassoe is $90,000.

The contract for the Valaris JU-122 has been extended due to the exercise of a one-well priced option with Shell in the North Sea, with an estimated duration of 150 days from November 2020 to April 2021. The dayrate estimate is $110,000.

The contract for the Valaris JU-117 (Ralph Coffman) has been extended due to the exercise of a two-well priced option with an undisclosed operator offshore Trinidad, with an estimated duration of 60 days from February 2020 to April 2020. According to Bassoe, the extension is with CGX Energy with a dayrate of $90,000.

The Valaris JU-115 jack-up rig contract has been extended due to the exercise of a four-month priced option with Mubadala Petroleum offshore Thailand from March 2020 to July 2020. The dayrate estimate is $85,000.

The Valaris JU-87 has been awarded a 21-well contract with ExxonMobil in the U.S. Gulf of Mexico that is expected to start in November 2019, with an estimated duration of 295 days. Bassoe estimates that the dayrate will be $50,000.

Offshore Energy Today Staff

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