Valaris Limited (NYSE: VAL) has announced a significant offshore contract, valued at $364 million, for the reactivation of the drillship VALARIS DS-7 for a 12-well venture in West Africa. The contract is slated to begin in the second quarter of 2024, lasting for an estimated 850 days. Additionally, Valaris has disclosed its intention to increase its share repurchase target for 2023 from $150 million to $200 million.

The contract requires only minimal customer-specific upgrades to the rig and excludes the provision of any supplementary services. It symbolizes the seventh contract awarded for Valaris’ high-quality floaters that necessitate reactivation since mid-2021.

Valaris’ President and Chief Executive Officer, Anton Dibowitz, expressed enthusiasm about the contract, stating, “This most recent award represents the seventh contract awarded to one of our high-quality floaters requiring reactivation since mid-2021 and speaks volumes about our demonstrated track record of project execution when reactivating rigs and delivering operational excellence for our customers. We continue to take a disciplined approach to rig reactivations, and we expect this contract to generate a meaningful return over the initial firm term.”

Dibowitz also addressed the company’s plan for share repurchase, saying, “In May, we announced an increase in our share repurchase authorization to $300 million and our intent to repurchase $150 million of shares by year-end 2023. To date, we have repurchased $91 million of shares. As a result of this attractive contract award and our continued commitment to returning capital to shareholders, we are increasing our 2023 share repurchase target from $150 million to $200 million.”

This announcement by Valaris Limited, one of the significant players in offshore drilling, underscores its robust track record in project execution, rig reactivation, and capital management, reflecting a promising outlook for its investors and stakeholders.

  Anton Dibowitz, Oil and gas news, Valaris, VALARIS DS-7, Valaris Limited, West Africa