Valaris Restricted (NYSE: VAL) has introduced a big multi-year contract in Brazil with Equinor Power do Brasil Ltda., a subsidiary of Equinor ASA, for its ultra-deepwater drillship VALARIS DS-17.
The contract is for work on the offshore Brazil Mission Raia, the place Equinor’s challenge companions embody Repsol Sinpoec Brazil (35%) and Petrobras (30%).
The contract, valued at roughly $498 million, together with managed stress drilling (MPD), further providers, and charges for mobilization and minor rig upgrades. With an estimated length of 852 days, the contract interprets to a day price of $584,000.
The settlement features a 672-day drilling program slated to start within the first half of 2026. The rig might be on standby for an estimated 180 days between the top of the present task and the beginning of the brand new interval, throughout which it might be obtainable for added work inside and out of doors of Brazil, doubtlessly producing incremental income.
Anton Dibowitz, President and CEO of Valaris, mentioned he expects to proceed to safe new contracts at larger day charges and construct its backlog, with robust buyer demand anticipated to assist earnings and money circulation progress by way of 2025 and 2026.
“We’re grateful to Equinor for the investments they’ve made in modern security and automation know-how on VALARIS DS-17 and the belief they’ve positioned in us to execute their improvement applications offshore Brazil. As well as, this contract additional underscores our observe file of delivering high-performing belongings following a reactivation,” Dibowitz added.
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