Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023.   Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.”   Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.”   Updated Guidance   As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023.   First Quarter 2023   Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023   Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

  Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico.   The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

  Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin.   The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL).   Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee.   “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling.   Source: Dolphin   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

  Shell and state-owned QatarEnergy (QE) have made a new oil discovery at a deepwater exploration well around 270km offshore Namibia, the country's third in just over a year.   The "light oil" discovery in the PEL-39 licence in the Orange Basin offshore southern Namibia was announced by QE, which holds a 45pc non-operating interest in the block, and Namibia's state-owned Namcor, which holds a 10pc stake. Shell, which operates the licence with a 45pc share, has yet to make an announcement.   QE said the discovery was made at the Jonker-1X deepwater well, which was drilled in water depths of around 2,200m. Drilling work began at the well in December and concluded several days ago, QE said. Neither QE nor Namcor have issued a reserve estimate, saying further appraisal work is needed still to determine the size and potential of the find.   The news cements Namibia's reputation as a frontier exploration hotspot. It is the third oil discovery in the space of a year. The other two were also in the Orange Basin, which extends from southern Namibia to the east coast of South Africa. The same consortium reported a discovery at the Graff-1 well, also in the PEL-39 licence, in early February 2022. A different consortium — comprising TotalEnergies, QE, UK-based independent Impact Oil and Gas and Namcor, announced a separate light oil discovery at the Venus 1-X well a few weeks later in the PEL-56 licence.   The Jonker find comes less than two weeks after TotalEnergies said it would begin a multi-well drilling campaign to appraise the Venus discovery. TotalEnergies said it plans to spend half of its 2023 exploration budget in Namibia. The company has previously indicated that Venus could hold at least 5bn bl of oil equivalent (boe) of recoverable oil and gas. Consultancy Wood Mackenzie has estimated it could hold as much as 6bn bl of oil, and possibly double that if the appraisal drilling yields positive results.   TotalEnergies holds a 40pc operating interest in the PEL-56 licence, with QE, Impact Oil and Gas and Namcor holding 30pc, 20pc and 10pc stakes, respectively. If successful, the Venus drilling campaign will result in two potentially fully appraised early production centres, Impact Oil and Gas said.   Source: Argus   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

  Solstad Offshore ASA nnounced they have signed an agreement with U.S. based Tidewater Inc. for the sale of 37 platform supply vessels.   “The sale of the PSVs represents a shift in our strategy in a changing market. The PSVs mainly support the oil and gas industry, while the AHTSs and CSVs can service all offshore energy sectors, including oil and gas and renewables. This move is therefore in line with our strategy of being a key enabler in the energy transition. Further, the transaction will give Solstad greater financial leeway and a significantly improved debt and cash position going forward.”   Lars Peder Solstad, CEO of Solstad Offshore Source: Solstad   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

  Reactivations favoured over newbuilds so far   As the supply/demand balance tightens, the reactivation of rigs has been on the rise with approximately 25 jackups, three semis and nine drillships brought back to life since 2021.   However, the level of newbuilds being delivered from shipyards hasn’t increased to the same level witnessed during the short-lived 2019 recovery period.   During 2019, 25 new jackups, four semis and two drillships were delivered from shipyards in the Far East or Singapore but 2022 brought with it just 10 deliveries in total, which is even less than the number delivered during 2020 (11 rigs).   Most of the remaining stranded newbuild rigs available, of which there are 22 jackups, 15 drillships and eight semis, are owned by the shipyards and drilling contractors continue to be very cautious when it comes to purchasing such a rig. However, 2023 could be the year the tide turns on this, especially if the level of demand continues to improve. In the last quarter of 2022, Transocean announced that it had signed a purchase agreement as part of a joint venture for the 7th generation ex-West Aquila drillship for US$200 million from the Daewoo shipyard.   Meanwhile, Saipem confirmed it had exercised its option to buy the 7th generation Santorini drillship (originally ordered by Ocean Rig), which it had been bare-boat chartering from Samsung Heavy Industries since 2021. Meanwhile, it’s understood that various drilling contractors are eyeing the remaining drillships left in yards.   New rig orders unlikely in near term   The level of new rig construction contracts being awarded has all but stopped, with just two new rigs ordered since 2015. Sentiment from the industry is that there is little appetite for new rigs to be ordered following the harsh lessons learned from previous newbuild cycles as well as a lack of spare capital for such an expensive purchase. Therefore, it is unlikely that we will see a wave of new construction anytime soon and instead drilling contractors will look to their own idle fleets or already under-construction or stranded units to meet their client’s needs if current supply runs out.   Source: Westwood   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

  The Biden administration needs until the end of the this year to finalize a long-awaited five-year plan for offshore oil and gas development in federal waters, according to court documents filed this week.   The Interior Department said it will take until December to complete "all necessary analyses, approvals, and mandatory procedural steps" related to the plan, the agency said in a filing on Monday with the U.S. Court of Appeals for the District of Columbia.   Source: Reuters   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

  Petrobras has signed three of Maersk Supply Service’s L-class anchor handlers for a three-year period, covering a broad work scope of anchoring handling activities and rig movements.   Maersk Leader, Maersk Launcher and Maersk Lancer have been delivered in Brazil. This now sees twelve vessels from the Maersk Supply Service fleet currently serving the Brazilian and Latin American markets.   'Maersk Supply Service is committed to investing in the Brazilian market and to delivering safe, efficient and sustainable solutions for our customers in this strategically important region. We are pleased at the trust Petrobras has again shown in us, and we look forward to continuing our positive collaboration,' says Rafael Thome, Managing Director for Brazil.   This contract comes as Maersk Supply Service continues to consolidate its presence in Brazil, establishing itself as a recognised integrated solutions supplier in the region. It follows a series of solutions contracts for the FPSO Fluminense on behalf of Shell, as well as the Mero 2 contract for Petrobras. Since 2017, Maersk Supply Service has expanded its portfolio to delivering EPCI solutions for the safe and efficient fabrication, assembly, and installation of large floating assets, building on its expertise and 50-year legacy of deep-water towing and mooring scopes. Source: Maersk   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

  Aquadrill and a subsidiary of Vantage Holdings International have reached an agreement to provide the Capella, an MPD outfitted 6th generation drillship, for a one well contract for operations in East Africa.   The total contract value for the contract is expected to be approx. $37 million. Work is expected to commence in mid-April 2023 and to run until the end of May 2023. Source: Aquadrill   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

  Shelf Drilling has secured a two-year contract for the Shelf Drilling Scepter for operations offshore Nigeria. The contract value for the firm period, including mobilization revenue, is approx. USD 118 million. The contract also includes a one-year option, and the planned start-up of operations is May 2023.   Source: Shelf   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here