HAMILTON, Bermuda – Valaris Ltd says that it has been awarded a 12-well contract offshore West Africa for the drillship VALARIS DS-7, which will be reactivated for this contract.
The contract is expected to commence in 2Q 2024 and has an estimated duration of 850 days. The total contract value is estimated to be $364 million.
In an update note on Valaris, oilfield analysis firm Evercore observed that “the contract does not include the provision of additional services, or MPD, which typically ranges between $40,000/day and $60,000/day, highlighting [that] the normalized dayrate could be nearing $500,000/day. Also worth mentioning are the relatively low operating costs in West Africa, which are generally at least $20,000/day lower than other regions of the Golden Triangle.”
