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.
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