Valaris bags $135m drillship deal in Africa
Valaris Secures $135 Million Offshore Contract
Valaris, a prominent offshore drilling company listed on the New York Stock Exchange, has clinched a significant five-well contract in West Africa for its drillship, the Valaris DS-15. This contract, awarded by an undisclosed client, is set to commence in the third quarter of 2026 and carries an estimated total value of $135 million, which includes initial payments for necessary rig upgrades and mobilization.
Contract Details and Future Prospects
The contract for the Valaris DS-15 is projected to last approximately 250 days. It encompasses priced options for up to five additional wells, with an estimated duration of 80 to 100 days. Valaris President and CEO Anton Dibowitz emphasized the importance of this contract, stating that it will include enhancements to the rig’s capabilities, specifically an upgraded managed pressure drilling system. This development not only strengthens Valaris’s operational capacity but also reinforces its strategic position in the West African offshore market, paving the way for future contracting opportunities.
In a related move, Valaris announced the sale of its 27-year-old jackup rig, the Valaris 247, to BW Energy for approximately $108 million. Currently operating offshore Australia, this sale is expected to finalize in the latter half of 2025. As part of the agreement, BW Energy will be restricted from deploying the rig outside its affiliated properties for the remainder of its operational life. BW Energy plans to convert the acquired jackup into a wellhead platform for its Maromba development offshore Brazil, which will feature an initial six production wells connected to the redeployed FPSO BW Maromba, previously known as Polvo. Refurbishment and life extension work on the FPSO is already underway at a facility in China.
Growing Contract Backlog
Valaris’s recent fleet status update revealed a notable increase in its contract backlog, which has risen to approximately $4.2 billion, up from $3.6 billion as of February 18, 2025. This backlog figure excludes lump sum payments, such as mobilization fees and capital reimbursements, indicating a robust demand for Valaris’s drilling services. The company’s strategic moves, including the recent contract and sale, highlight its commitment to expanding its footprint in the offshore drilling sector while optimizing its fleet for future projects.
