Valaris Announces Multi-Year Contract Award for Drillship VALARIS DS-17
July 22 2024 - 7:45AM
Business Wire
Valaris Limited (NYSE: VAL) (“Valaris” or the “Company”)
announced today that it has been awarded a multi-year contract with
Equinor Energy do Brasil Ltda., a subsidiary of Equinor ASA
(“Equinor”), for drillship VALARIS DS-17. The contract relates to
work offshore Brazil on Project Raia. Equinor’s project partners
are Repsol Sinpoec Brazil (35%) and Petrobras (30%).
The estimated total contract value is approximately $498
million, inclusive of MPD, additional services and fees for
mobilization and minor rig upgrades. The contract has an estimated
total duration of 852 days.
- The contract includes a 672-day drilling program that is
expected to commence in the first half of 2026.
- The rig will be on standby for an estimated duration of 180
days between the end of the rig’s current program and the beginning
of the operating period.
- During the standby period, the rig may be available for work
both inside and outside Brazil, which could lead to incremental
revenue.
President and Chief Executive Officer Anton Dibowitz said, “This
contract award is a testament to the quality of our crews and the
collaborative nature of our relationship with Equinor. We are
grateful to Equinor for the investments they have made in
leading-edge safety and automation technology on VALARIS DS-17 and
the trust they have placed in us to execute their development
programs offshore Brazil. In addition, this contract further
underscores our track record of delivering high-performing assets
following a reactivation.”
Dibowitz added, “We continue to execute our commercial strategy
by securing new contracts at higher day rates and consistently
building our backlog as evidenced by this multi-year drillship
contract. We see strong customer demand for work that is expected
to commence in 2025 and 2026 that will continue to support our
anticipated earnings and cash flow growth over the next few
years.”
About Valaris Limited
Valaris Limited (NYSE: VAL) is the industry leader in offshore
drilling services across all water depths and geographies.
Operating a high-quality rig fleet of ultra-deepwater drillships,
versatile semisubmersibles and modern shallow-water jackups,
Valaris has experience operating in nearly every major offshore
basin. Valaris maintains an unwavering commitment to safety,
operational excellence, and customer satisfaction, with a focus on
technology and innovation. Valaris Limited is a Bermuda exempted
company (Bermuda No. 56245). To learn more, visit our website at
www.valaris.com.
Cautionary Statements
Statements contained in this press release that are not
historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include words or phrases such as
"anticipate," "believe," "estimate," "expect," "intend," "likely,"
"plan," "project," "could," "may," "might," "should," "will" and
similar words and specifically include statements regarding
expected financial performance; expected utilization, day rates,
revenues, operating expenses, cash flows, contract status, terms
and duration, contract backlog, capital expenditures, insurance,
financing and funding; the offshore drilling market, including
supply and demand, customer drilling programs, stacking of rigs,
effects of new rigs on the market and effect of the volatility of
commodity prices; expected work commitments, awards, contracts and
letters of intent; scheduled delivery dates for rigs; performance
of our joint ventures, including our joint venture with Saudi
Aramco; timing of the delivery of the Saudi Aramco Rowan Offshore
Drilling Company ("ARO") newbuild rigs and the timing of additional
ARO newbuild orders; the availability, delivery, mobilization,
contract commencement, availability, relocation or other movement
of rigs and the timing thereof; rig reactivations; suitability of
rigs for future contracts; divestitures of assets; general
economic, market, business and industry conditions, including
inflation and recessions, trends and outlook; general political
conditions, including political tensions, conflicts and war (such
as the ongoing conflict in Ukraine); cybersecurity attacks and
threats; impacts and effects of public health crises, pandemics and
epidemics, such as the COVID-19 pandemic; future operations;
ability to renew expiring contracts or obtain new contracts,
including for VALARIS DS-13 and VALARIS DS-14; increasing
regulatory complexity; targets, progress, plans and goals related
to environmental, social and governance (“ESG”) matters; the
outcome of tax disputes; assessments and settlements; and expense
management. The forward-looking statements contained in this press
release are subject to numerous risks, uncertainties and
assumptions that may cause actual results to vary materially from
those indicated, including cancellation, suspension, renegotiation
or termination of drilling contracts and programs; our ability to
obtain financing, service our debt, fund capital expenditures and
pursue other business opportunities; adequacy of sources of
liquidity for us and our customers; future share repurchases;
actions by regulatory authorities, or other third parties; actions
by our security holders; internal control risk; commodity price
fluctuations and volatility, customer demand, loss of a significant
customer or customer contract, downtime and other risks associated
with offshore rig operations; adverse weather, including
hurricanes; changes in worldwide rig supply, including as a result
of reactivations and newbuilds; and demand, competition and
technology; supply chain and logistics challenges; consumer
preferences for alternative fuels and forecasts or expectations
regarding the global energy transition; increased scrutiny of our
ESG targets, including our Scope 1 emissions intensity reduction
target, initiatives and reporting and our ability to achieve such
targets or initiatives; changes in customer strategy; future levels
of offshore drilling activity; governmental action, civil unrest
and political and economic uncertainties, including recessions,
volatility affecting the banking system and financial markets,
inflation and adverse changes in the level of international trade
activity; terrorism, piracy and military action; risks inherent to
shipyard rig reactivation, upgrade, repair, maintenance or
enhancement; our ability to enter into, and the terms of, future
drilling contracts; suitability of rigs for future contracts; the
cancellation of letters of intent or letters of award or any
failure to execute definitive contracts following announcements of
letters of intent, letters of award or other expected work
commitments; the outcome of litigation, legal proceedings,
investigations or other claims or contract disputes; governmental
regulatory, legislative and permitting requirements affecting
drilling operations; our ability to attract and retain skilled
personnel on commercially reasonable terms; environmental or other
liabilities, risks or losses; compliance with our debt agreements
and debt restrictions that may limit our liquidity and flexibility;
cybersecurity risks and threats; and changes in foreign currency
exchange rates. In addition to the numerous factors described
above, you should also carefully read and consider "Item 1A. Risk
Factors" in Part I and "Item 7. Management's Discussion and
Analysis of Financial Condition and Results of Operations" in Part
II of our most recent annual report on Form 10-K, which is
available on the Securities and Exchange Commission's website at
www.sec.gov or on the Investor Relations section of our website at
www.valaris.com. Each forward-looking statement speaks only as of
the date of the particular statement, and we undertake no
obligation to update or revise any forward-looking statements,
except as required by law.
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Investor & Media Contacts:
Nick Georgas Vice President – Treasurer and Investor Relations
+1-713-979-4632
Tim Richardson Director – Investor Relations +1-713-979-4619
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