Written by
Nick Blenkey
Picture: Valaris
Offshore drilling contractor Valaris Restricted (NYSE: VAL) experiences that it has exercised its choices and brought supply of newbuild drillships Valaris DS-13 and DS-14 for an combination buy worth of roughly $337 million.
President and CEO Anton Dibowitz stated, “We’re delighted so as to add these two rigs, the very best specification drillships remaining on the South Korean shipyards, to our fleet. These additions improve our drillship fleet to 13 rigs, reinforcing its place as one of the vital technically succesful within the trade.”
“Following the profitable contracting of six of our stacked drillships since mid-2021, the acquisition of Valaris DS-13 and DS-14 will increase our working leverage to the enticing ultra-deepwater floater market,” Dibowitz added. “Primarily based on our constructive market outlook, rising future demand and robust buyer curiosity in these rigs, we imagine that the acquisition of those excessive specification drillships at compelling costs will generate enticing returns.”
Valaris says the 2 drillships can be mobilized from South Korea to Las Palmas, Spain, the place they are going to be stacked till they’re contracted for work.
The corporate says the acquisition of the pair is anticipated to extend its fourth quarter 2023 capital expenditures by roughly $355 million, representing the acquisition worth for the drillships and prices related to getting ready them to mobilize from South Korea to Las Palmas. As well as, the corporate anticipates 2024 capital expenditures of roughly $35 million primarily associated to mobilization prices.
