Offshore drilling contractor Valaris Limited (NYSE: VAL) in the present day reported that it’s reactivating its Valaris DS-7 drillship to service a newly-awarded 12-well contract offshore West Africa
The contract is anticipated to begin in second quarter 2024 and has an estimated length of 850 days. The complete contract worth is estimated to be $364 million. The firm says that the contract requires minimal customer-specific upgrades to the rig and doesn’t embody the availability of any further companies.
President and CEO Anton Dibowitz stated, “This most recent award represents the seventh contract awarded to one of our high-quality floaters requiring reactivation since mid-2021 and speaks volumes about our demonstrated track record of project execution when reactivating rigs and delivering operational excellence for our customers. We continue to take a disciplined approach to rig reactivations, and we expect this contract to generate a meaningful return over the initial firm term.”
Originally delivered to Valaris predecessor Ensco in 2013, the Valaris DS-7 is an ultra-deepwater DP3 drillship constructed by the Samsung Heavy Industries shipyard in South Korea.
Today’s announcement from Valaris is in step with the current insights into floater reactivation prospects made by London-based Maritime Strategies International (MSI). As we reported earlier MSI famous that, whereas the marketplace for floaters has lengthy since crossed an inflection level incentivizing the reactivation of cold-stacked tonnage, operators stay disciplined of their strategy.
