New drilling contracts awarded

Valaris Limited, the Bermudian-based offshore drilling company, has been awarded new contracts and contract extensions with expected associated contract backlog to the company of approximately $275 million.

The contract backlog excludes lump sum payments such as mobilisation fees and capital reimbursements.

Valaris said the new deals include:

• 90-day contract with Kistos in the Dutch North Sea for heavy duty harsh environment jack-up Valaris 123. The contract commenced in November.
• 195-day contract with One-Dyas in the Dutch North Sea for heavy duty harsh environment jack-up Valaris 123. The contract is expected to commence in first quarter 2023 in direct continuation of the rig’s current contract.
• 210-day contract with Shell in the UK North Sea for heavy duty harsh environment jack-up Valaris 121. The contract is expected to commence early in fourth quarter 2023. The expected total contract value is more than $25 million. The contract has four priced options.
• 180-day contract with Perenco in the UK North Sea for heavy duty ultra-harsh environment jack-up Valaris 247. The contract is expected to commence in first quarter 2023. The contract has one 60-day option.
• 90-day option exercised by Cantium in the US Gulf of Mexico for standard duty modern jack-up Valaris 144. The option period is expected to commence in March in direct continuation of the existing contract. The operating day rate for the option period is $85,000.

The new deals include contracts secured for Aro Drilling, its 50/50 joint venture with Saudi Aramco, the Saudi Arabian public petroleum and natural gas company based in Dhahran:

• Three-year contract extension offshore Saudi Arabia for standard duty modern jack-up Valaris 147. The extension period is expected to commence this month in direct continuation of the existing contract. In accordance with the terms of its shareholder agreement, Valaris will bareboat charter Valaris 147 to Aro. The expected revenue from such bareboat charter is included in the $275 million of additional Valaris backlog.
• Three-year contract extension offshore Saudi Arabia for standard duty modern jack-up Valaris 148. The extension period is expected to commence in February in direct continuation of the existing contract. In accordance with the terms of its shareholder agreement, Valaris will bareboat charter Valaris 148 to Aro. The expected revenue is also included in the $275 million of additional Valaris backlog.

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