Valaris Limited’s Post

Insights on Valaris’ $498 Million Drillship Contract with Equinor for the Raia Project Contract Overview 1. Contract Award: • Company: Valaris Limited • Client: Equinor Energy do Brasil Ltda., a subsidiary of Equinor ASA • Project: Raia project offshore Brazil • Contract Value: Approximately $498 million • Drillship: VALARIS DS-17 • Partners: Repsol Sinpoec Brazil (35%) and Petrobras (30%) 2. Contract Details: • Total Duration: 852 days • Drilling Program Duration: 672 days, expected to commence in the first half of 2026 • Standby Period: 180 days between the end of the current program and the start of the new operating period • Additional Inclusions: Managed Pressure Drilling (MPD), additional services, fees for mobilization, and minor rig upgrades Strategic and Operational Implications 1. Testament to Crew Quality and Collaboration: • Valaris’ President and CEO, Anton Dibowitz, highlighted the contract as a testament to the quality of Valaris’ crews and the collaborative nature of their relationship with Equinor. This indicates strong operational performance and effective partnership management, which are critical for securing high-value contracts. 2. Investment in Technology: • The contract underscores investments in leading-edge safety and automation technology on VALARIS DS-17. This reflects a commitment to advanced technological solutions that enhance operational efficiency and safety, which are key differentiators in the competitive offshore drilling market. 3. Commercial Strategy Execution: • Valaris continues to execute its commercial strategy by securing new contracts at higher day rates, thereby building its backlog. This strategic focus on securing long-term, high-value contracts positions the company for sustained earnings and cash flow growth. Market Dynamics and Future Outlook 1. Strong Customer Demand: • The contract reflects strong customer demand for offshore drilling services, particularly for projects expected to commence in 2025 and 2026. This suggests a positive outlook for the offshore drilling market, driven by ongoing investments in exploration and production activities. 2. Earnings and Cash Flow Growth: • The multi-year nature of the contract and the higher day rates are expected to support Valaris’ anticipated earnings and cash flow growth over the next few years. This long-term revenue visibility is crucial for financial stability and strategic planning. 3. Brazil’s Offshore Potential: • The Raia project, located offshore Brazil, highlights the significant potential of Brazil’s offshore oil and gas reserves. Brazil continues to be a key market for offshore drilling, attracting substantial investments from major energy companies like Equinor, Repsol Sinpoec, and Petrobras.

Valaris accumulates $1.14 billion in backlog from offshore drillship contracts with, Shell, Petrobras, Equinor and more   Valaris Limited announced new contracts and contract extensions, with an associated contract backlog of approximately $1.14 billion. Contract backlog excludes lump sum payments such as mobilization fees and capital reimbursements. 🔽 Find more info in comments below 🔽 #Valaris #OffshoreDrilling #OilandGas #OffshoreOilandGas #OilandGasNews ⤵️ Click Follow on our page to keep up to date with energy news ⤵️

🇧🇷 It's #TravelTuesday here at Oilfield Technology, and this week we are heading to Brazil! 💡 Valaris Limited has announced that it has been awarded a multi-year contract with Equinor Energy do Brasil Ltda., a subsidiary of 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 US$498 million, inclusive of MPD, additional services and fees for mobilisation and minor rig upgrades. The contract has an estimated total duration of 852 days. 💬 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.” Read the full story here 👇 https://lnkd.in/eJcNHTN5

Equinor’s floating production, storage and offloading (FPSO) vessel has successfully anchored at the Johan Castberg #oilfield, as the Norwegian operator prepares for production start-up at the Barents Sea site by year-end. The hook-up of the 313-meter-long FPSO to #subsea facilities would now begin, Equinor said. The company has a 50% stake in the field, with partners Vår Energi and Petoro holding 30% and 20%, respectively. “Johan Castberg is important for our development plans in Northern Norway,” said Grete Birgitte Haaland, SVP for Exploration & Production North. “When the field comes on stream, a new province will be opened for oil recovery in the Barents Sea. This provides new opportunities for the exploration for and development of new discoveries in the area. Working with our partners we are already maturing five discoveries towards a possible tie-in to Johan Castberg.” Johan Castberg, located 240 km northwest of Hammerfest, is a large oilfield with estimated recoverable volumes of between 450 and 650 million barrels. The field is expected to produce for 30 years, and at its peak, could produce some 220,000 barrels per day. The field development concept includes 30 wells distributed across ten #subsea templates and two satellites that will be tied back to the FPSO. To date, 13 of those wells have been drilled, with #drilling operations set to continue into 2026. ⭐ Equinor is a member of the Breakbulk Global Shipper Network. #breakbulk #breakbulkamericas #breakbulkeurope #oilandgas #offshoreenergy #projectlogistics #projectcargo #bbam2024 #bbeu2025

Offshore News - Norway: Congratulations Odfjell Technology, on the recent contract from Repsol  Norge AS for drilling services on Yme Inspirer jack-up rig (formerly Maersk Inspirer) located in the North Sea. The contract services include drilling, completion, re-completion, well intervention, maintenance, engineering, and future plug & abandonment work. The contract will begin in the second quarter of 2024 and is a firm 5-year contract with two 3-year option periods. The anticipated value is 400 million NOK (about $38 million) for the firm period and 1 billion NOK (approximately $95 million) with options. Don't miss the 5th Edition of Shallow and Deepwater Mexico October 8-10, 2024 in Mexico's Petroleum Capital, Ciudad del Carmen, Campeche.   https://lnkd.in/eDmgY8D #offshore #oilandgasindustry #upstream #shallowanddeepwaterexpo  #offshoreenergy #northsea #energy #drillingcontractor #drilling https://lnkd.in/eKM4WvpA

𝐕𝐚𝐥𝐚𝐫𝐢𝐬 𝐒𝐞𝐜𝐮𝐫𝐞𝐬 $𝟒𝟗𝟖 𝐌𝐢𝐥𝐥𝐢𝐨𝐧 𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭 𝐰𝐢𝐭𝐡 𝐄𝐪𝐮𝐢𝐧𝐨𝐫 𝐟𝐨𝐫 𝐎𝐟𝐟𝐬𝐡𝐨𝐫𝐞 𝐁𝐫𝐚𝐳𝐢𝐥 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 Valaris Limited (NYSE: VAL) has announced a significant multi-year contract in Brazil with Equinor Energy do Brasil Ltda., a subsidiary of Equinor ASA, for its ultra-deepwater drillship VALARIS DS-17. The contract is for work at the offshore Brazil Project Raia, where Equinor’s project partners include Repsol Sinpoec Brazil (35%) and Petrobras (30%). The contract, valued at approximately $498 million, including managed pressure drilling (MPD), additional services, and fees for mobilization and minor rig upgrades. With an estimated duration of 852 days, the contract translates to a day rate of $584,000. The agreement includes a 672-day drilling program slated to begin in the first half of 2026. The rig will be on standby for an estimated 180 days between the end of the current assignment and the start of the new period, during which it may be available for additional work inside and outside of Brazil, potentially generating incremental revenue. Anton Dibowitz, President and CEO of Valaris, said he expects to continue to secure new contracts at higher day rates and build its backlog, with strong customer demand expected to support earnings and cash flow growth through 2025 and 2026. “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.

Equinor have reported that 16/2-D-38 ❲Johan Sverdrup Field❳ has started 𝗱𝗿𝗶𝗹𝗹𝗶𝗻𝗴 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 Recently there has been 𝗰𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝘁 reported activity in the Johan Sverdrup Field If you found this post interesting please like this post and share this post #oilandgas #businessintelligence #datademocracy #wellengineering #NPD #Equinor

Equinor have reported that 16/5-K-2 H ❲Johan Sverdrup Field❳ has started 𝗱𝗿𝗶𝗹𝗹𝗶𝗻𝗴 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 Recently there has been 𝗰𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝘁 reported activity in the Johan Sverdrup Field If you found this post interesting please like this post and share this post #oilandgas #businessintelligence #datademocracy #wellengineering #NPD #Equinor

Equinor have reported that 16/2-D-39 ❲Johan Sverdrup Field❳ has started 𝗱𝗿𝗶𝗹𝗹𝗶𝗻𝗴 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 Recently there has been 𝗰𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝘁 reported activity in the Johan Sverdrup Field If you found this post interesting please like this post and share this post #oilandgas #businessintelligence #datademocracy #wellengineering #NPD #Equinor

Transocean (RIG) to Support Equinor's Barents Sea Endeavours   Transocean Limited RIG owned semi-submersible rig, Transocean Enabler, has received the green light from the Norwegian regulator to be used by Equinor ASA EQNR for production drilling/completion and exploration drilling in the Barents Sea. 🔽 Find more info in comments below 🔽 #TransoceanLimited #RIG #TransoceanEnabler #NorwegianRegulator #EquinorASA #CleanEnergy #OilandGasNews ⤵️ Click Follow on our page to keep up to date with energy news ⤵️