Valaris takes delivery of two drillships
Written by Nick Blenkey
Image: Valaris
Offshore drilling contractor Valaris Limited (NYSE: VAL) reports that it has exercised its options and taken delivery of newbuild drillships Valaris DS-13 and DS-14 for an aggregate purchase price of approximately $337 million.
President and CEO Anton Dibowitz said, “We are delighted to add these two rigs, the highest specification drillships remaining at the South Korean shipyards, to our fleet. These additions increase our drillship fleet to 13 rigs, reinforcing its position as one of the most technically capable in the industry.”
“Following the successful contracting of six of our stacked drillships since mid-2021, the purchase of Valaris DS-13 and DS-14 increases our operating leverage to the attractive ultra-deepwater floater market,” Dibowitz added. “Based on our positive market outlook, growing future demand and strong customer interest in these rigs, we believe that the purchase of these high specification drillships at compelling prices will generate attractive returns.”
Valaris says the two drillships will be mobilized from South Korea to Las Palmas, Spain, where they will be stacked until they are contracted for work.
The company says the purchase of the pair is expected to increase its fourth quarter 2023 capital expenditures by approximately $355 million, representing the purchase price for the drillships and costs associated with preparing them to mobilize from South Korea to Las Palmas. In addition, the company anticipates 2024 capital expenditures of approximately $35 million primarily related to mobilization costs.
