Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Valaris Ltd | a04-22x208xkfsr.htm |
 | Valaris plc Fleet Status Report April 22, 2020 | |||
New Contracts & Extensions Since February 13, 2020 Fleet Status Report | ||
Floaters • VALARIS MS-1 awarded a three-well contract with Santos offshore Australia that is expected to commence in first quarter 2021, with an estimated duration of 155 days• VALARIS 8505 awarded a one-well contract with Lukoil Upstream Mexico that is expected to commence in mid-November, with an estimated duration of 80 daysJackups • VALARIS JU-118 (Joe Douglas) awarded a three-well contract with Fieldwood offshore Mexico that commenced in mid-March, with an estimated duration of 425 days• VALARIS JU-144 (EXL II) awarded a two-well contract with Fieldwood offshore Mexico that is expected to commence in May, with an estimated duration of 200 days; contract previously announced with ENI offshore Mexico expected to commence in September 2020 transferred to VALARIS JU-102• VALARIS JU-87 awarded a one-well contract with Cox in the U.S. Gulf of Mexico, with an estimated duration of 30 days from March 2020 to April 2020, and then extended to May 2020 for another well with an estimated duration of 30 days | Other • VALARIS DS-8 contract, which was scheduled to be completed in November 2020, was early terminated and ended in late March 2020• VALARIS JU-109 contract, which was scheduled to be completed in July 2021, was early terminated and ended in mid April 2020• VALARIS DS-7 contract for operations offshore Ghana from April 2020 to mid-May 2020 has been terminated• VALARIS 5004 operated on a reduced day rate from mid March 2020 to mid April 2020, at which point the contract was terminated• VALARIS JU-249 (Gorilla VII) ended its contract with Chrysaor in early April 2020• VALARIS DS-16 (Resolute) expected to end its contract with Fieldwood in late June 2020• VALARIS 8503 expected to end its contract with Kosmos in late April 2020• VALARIS JU-100 expected to end its contract with DNO in late April 2020• VALARIS DS-10 expected to operate on a reduced day rate from late April 2020 to mid July 2020• VALARIS JU-120 expected to operate on a reduced day rate from late April 2020 to late September 2020• VALARIS JU-92 expected to operate on a reduced day rate from mid May 2020 to late September 2020• VALARIS JU-72 expected to operate on a reduced day rate from April 2020 to July 2020• VALARIS DS-4, VALARIS DS-11, VALARIS DS-17 & VALARIS 8504 are in the process of being preservation stacked | |
New Disclosure: bolded text signifies contracts or extensions that have not been previously disclosed.
Page 1 of 12
| Valaris plc Fleet Status Report April 22, 2020 | |||
Contract Backlog(1) ($ millions) | Q2 - Q4 2020 | 2021 | 2022 | 2023 and Beyond | Total | Contract Days(1) | Q2 - Q4 2020 | 2021 | 2022 | |||||||||||||||||
Drillships | $ | 233.9 | $ | 77.5 | $ | — | $ | — | $ | 311.4 | Drillships | 1,271 | 349 | — | ||||||||||||
Semisubmersibles | 137.0 | 93.3 | — | — | 230.3 | Semisubmersibles | 709 | 417 | — | |||||||||||||||||
Floaters | $ | 370.9 | $ | 170.8 | $ | — | $ | — | $ | 541.7 | Floaters | 1,980 | 766 | — | ||||||||||||
HD - Ultra-Harsh & Harsh | $ | 234.5 | $ | 200.2 | $ | 59.9 | $ | — | $ | 494.6 | HD - Ultra-Harsh & Harsh | 2,049 | 1,835 | 629 | ||||||||||||
HD & SD - Modern | 172.8 | 112.5 | 57.5 | 0.3 | 343.1 | HD & SD - Modern | 2,341 | 1,594 | 730 | |||||||||||||||||
SD - Legacy | 68.8 | 96.8 | 70.9 | 4.3 | 240.8 | SD - Legacy | 1,055 | 1,339 | 979 | |||||||||||||||||
Jackups | $ | 476.1 | $ | 409.5 | $ | 188.3 | $ | 4.6 | $ | 1,078.5 | Jackups | 5,445 | 4,768 | 2,338 | ||||||||||||
Leased Rigs | $ | 68.3 | $ | 67.5 | $ | 6.7 | $ | — | $ | 142.5 | Leased Rigs | 2,475 | 2,554 | 560 | ||||||||||||
Managed Rigs | 49.5 | 64.7 | 3.4 | — | 117.6 | Managed Rigs | 550 | 730 | 27 | |||||||||||||||||
Other | $ | 117.8 | $ | 132.2 | $ | 10.1 | $ | — | $ | 260.1 | Other | 3,025 | 3,284 | 587 | ||||||||||||
Total | $ | 964.8 | $ | 712.5 | $ | 198.4 | $ | 4.6 | $ | 1,880.3 | Total | 10,450 | 8,818 | 2,925 | ||||||||||||
HD = Heavy Duty; SD = Standard Duty (1) Contract backlog, contract days and average day rates as of March 31, 2020 exclusive of performance bonus, adjusted for drilling contracts signed or terminated after March 31, 2020 but prior to furnishing the Fleet Status Report as an exhibit to the Form 8-K filed on April 22, 2020. (2) Leased rigs represents contract backlog and contract days related to bareboat charter agreements. | Average Day Rates(1) | Q2 - Q4 2020 | 2021 | 2022 | ||||||||||||||||||||||
Drillships | $ | 184,000 | $ | 222,000 | $ | — | ||||||||||||||||||||
Semisubmersibles | 193,000 | 224,000 | — | |||||||||||||||||||||||
Floaters | $ | 187,000 | $ | 223,000 | $ | — | ||||||||||||||||||||
HD - Ultra-Harsh & Harsh | $ | 114,000 | $ | 109,000 | $ | 95,000 | ||||||||||||||||||||
HD & SD - Modern | 74,000 | 71,000 | 79,000 | |||||||||||||||||||||||
SD - Legacy | 65,000 | 72,000 | 72,000 | |||||||||||||||||||||||
Jackups | $ | 87,000 | $ | 86,000 | $ | 81,000 | ||||||||||||||||||||
Page 2 of 12
| Valaris plc Fleet Status Report April 22, 2020 | |||
Asset Type / Status / Rig | Design | Year Delivered | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Comments | |||||||
Drillships | ||||||||||||||
Marketed | ||||||||||||||
VALARIS DS-18 (Relentless) | GustoMSC P10000 | 2015 | EnVen Chevron | U.S. GOM U.S. GOM | Feb. 20 Sep. 20 | Apr. 20 Mar. 21 | Contracted for two wells. Plus one 1-well priced option Contracted for two wells. Plus five 1-well priced options | |||||||
VALARIS DS-16 (Resolute) | GustoMSC P10000 | 2014 | Fieldwood | U.S. GOM | Mar. 19 | Jun. 20 | ||||||||
VALARIS DS-15 (Renaissance) | GustoMSC P10000 | 2014 | Murphy CNOOC | U.S. GOM Mexico | Jan. 20 May 20 | May 20 Oct. 20 | Contracted for two wells Contracted for two wells. Plus two 1-well priced options | |||||||
VALARIS DS-12 | DSME 12000 | 2014 | BP BP | Egypt Angola | Feb. 20 Jul. 20 | Jun. 20 Jan. 21 | Contracted for one well Contracted for four wells. Plus four 1-well options | |||||||
VALARIS DS-10 | Samsung GF12000 | 2017 | Shell | Nigeria | Mar. 18 | Mar. 21 | Operating on a reduced day rate from late April 2020 to mid-July 2020, then expected to return to full day rate until end of contract in March 2021. Plus three 1-year priced options | |||||||
VALARIS DS-9 | Samsung GF12000 | 2015 | Total Premier | Brazil Brazil | Jun. 19 Jul. 20 | May 20 Aug. 20 | Contracted for four wells Contracted for one well | |||||||
VALARIS DS-8 | Samsung GF12000 | 2015 | Total Available | Angola | Nov. 15 | Mar. 20 | ||||||||
VALARIS DS-7 | Samsung 96K | 2013 | Burullus ----- BP | Egypt ----- Senegal/Mauritania | Apr. 19 ----- Sep. 20 | Mar. 20 ----- Aug. 21 | Contract for operations offshore Ghana from April 2020 to mid May 2020 has been terminated Contracted for five wells. Plus one 1-well priced option and two 1-well unpriced options | |||||||
Under Construction | ||||||||||||||
VALARIS DS-14 | DSME 12000 | Under Construction | South Korea | Scheduled delivery date 2Q22 | ||||||||||
VALARIS DS-13 | DSME 12000 | Under Construction | South Korea | Scheduled delivery date 3Q21 | ||||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 3 of 12
Asset Type / Status / Rig | Design | Year Delivered | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Comments | |||||||
Preservation Stacked | ||||||||||||||
VALARIS DS-3 | Samsung 96K | 2010 | Preservation Stacked(2) | Spain | ||||||||||
VALARIS DS-4 | Samsung 96K | 2010 | Preservation Stacking(2) | Spain | ||||||||||
VALARIS DS-5 | Samsung 96K | 2011 | Preservation Stacked(2) | Spain | ||||||||||
VALARIS DS-6 | Samsung 96K | 2012 | Preservation Stacked(2) | Spain | ||||||||||
VALARIS DS-11 | DSME 12000 | 2013 | Preservation Stacked(2) | Spain | ||||||||||
VALARIS DS-17 (Reliance) | GustoMSC P10000 | 2014 | Preservation Stacking(2) | Spain | ||||||||||
Semisubmersibles | ||||||||||||||
Marketed | ||||||||||||||
VALARIS DPS-1 | F&G ExD Millennium, DP | 2012 | Woodside | Australia | Feb. 20 | Sep. 21 | Contracted for ten wells. Plus one 2-well option | |||||||
VALARIS 8505 | ENSCO 8500 Series, DP + Moored | 2012 | Eni Lukoil | Mexico Mexico | Jan. 19 Nov. 20 | Nov. 20 Feb. 21 | Contracted for six wells in the U.S. GOM and for five wells in Mexico Contracted for one well. Plus 1-well option | |||||||
VALARIS 8503 | ENSCO 8500 Series, DP + Moored | 2010 | Kosmos Available | U.S. GOM | Sep. 19 | Apr. 20 | Contracted for six wells. | |||||||
VALARIS MS-1 | F&G ExD Millennium, Moored | 2011 | Inpex Santos | Australia Australia | Jul. 20 Feb. 21 | Nov. 20 Apr. 21 | Contracted for one well Contracted for three wells. Plus 6-well option | |||||||
VALARIS 5004 | F&G Enhanced Pacesetter, Moored | 1982 | Mellitah Available | Mediterranean | Aug. 14 | Apr. 20 | Operated on reduced day rate from mid-March 2020 to mid-April 2020 before contract ended | |||||||
Preservation Stacked | ||||||||||||||
VALARIS 8500 | ENSCO 8500 Series, DP | 2008 | Preservation Stacked(2) | U.S. GOM | ||||||||||
VALARIS 8501 | ENSCO 8500 Series, DP | 2009 | Preservation Stacked(2) | U.S. GOM | ||||||||||
VALARIS 8502 | ENSCO 8500 Series, DP | 2010 | Preservation Stacked(2) | U.S. GOM | ||||||||||
VALARIS 8504 | ENSCO 8500 Series, DP + Moored | 2011 | Preservation Stacking(2) | Malaysia | ||||||||||
VALARIS 8506 | ENSCO 8500 Series, DP | 2012 | Preservation Stacked(2) | U.S. GOM | ||||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 4 of 12
| Valaris plc Fleet Status Report April 22, 2020 | |||
Segment / Asset Type / Rig | Design | Year Delivered | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Comments | |||||||
Jackups | ||||||||||||||
Heavy Duty Ultra-Harsh Environment(3) | ||||||||||||||
VALARIS JU-292 (Norway) | KFELS N Class | 2011 | ConocoPhillips | Norway | Nov. 19 | Feb. 21 | Plus one 13-month priced option | |||||||
VALARIS JU-291 (Stavanger) | KFELS N Class | 2011 | Equinor | Norway | Oct. 19 | Dec. 20 | Plus three 1-well priced options and recurring 6-month priced options through Dec. 25 | |||||||
VALARIS JU-290 (Viking) | KFELS N Class | 2010 | Repsol Lundin | Norway Norway | Oct. 19 May 20 | Apr. 20 Sep. 21 | Contracted for accommodation services Contracted for seven wells. Plus four 1-well priced options | |||||||
VALARIS JU-250 (Bob Palmer) | LT Super Gorilla XL | 2003 | Saudi Aramco | Saudi Arabia | Jun. 18 | Jun. 21 | Leased to ARO Drilling(4) | |||||||
VALARIS JU-249 (Gorilla VII) | LT Super Gorilla | 2002 | Chrysaor Neptune | UK UK | May 18 Aug. 20 | Apr. 20 Jan. 22 | Contract transferred from VALARIS JU-248. Contracted for four wells. Plus two 1-well options | |||||||
VALARIS JU-248 (Gorilla VI) | LT Super Gorilla | 2000 | Premier | UK | May 20 | Aug. 20 | Contracted for three wells | |||||||
VALARIS JU-247 (Gorilla V) | LT Super Gorilla | 1998 | Total | UK | Sep. 17 | Nov. 20 | Plus one 3-month and one 6-month priced options | |||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 5 of 12
| Valaris plc Fleet Status Report April 22, 2020 | |||
Segment / Region / Rig | Design | Year Delivered | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Comments | |||||||
Jackups | ||||||||||||||
Heavy Duty Harsh Environment(3) | ||||||||||||||
VALARIS JU-123 | KFELS Super A | 2019 | Premier | UK | Oct. 20 | Nov. 21 | Contracted for four wells. Plus three 1-well options | |||||||
VALARIS JU-122 | KFELS Super A | 2014 | Shell | UK | Jan. 20 | Apr. 21 | Contracted for three wells. Plus six 1-well priced options | |||||||
VALARIS JU-121 | KFELS Super A | 2013 | ONE Available | Netherlands | Apr. 19 | Apr. 20 | Contracted for three wells | |||||||
VALARIS JU-120 | KFELS Super A | 2013 | Chrysaor | UK | Jul. 17 | Dec. 22 | Operating on a reduced day rate from late April 2020 to late September 2020, then expected to return to full day rate until end of contract in December 2022 | |||||||
VALARIS JU-102 | KFELS MOD V-A | 2002 | Eni | Mexico | Sep. 20 | Sep. 22 | Contracted for twelve wells | |||||||
VALARIS JU-101 | KFELS MOD V-A | 2000 | Ithaca | UK | Apr. 20 | May 20 | Contracted for three wells | |||||||
VALARIS JU-100 | LT Gorilla | 1987 | DNO | UK | Nov. 19 | Apr. 20 | Contracted for nine P&A wells | |||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 6 of 12
| Valaris plc Fleet Status Report April 22, 2020 | |||
Segment / Region / Rig | Design | Year Delivered | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Comments | |||||||
Jackups | ||||||||||||||
Heavy Duty - Modern(3) | ||||||||||||||
VALARIS JU-118 (Joe Douglas) | LT 240-C | 2011 | Fieldwood | Mexico | Mar. 20 | May 21 | Contracted for three wells. Plus a 3-well option | |||||||
VALARIS JU-117 (Ralph Coffman) | LT 240-C | 2009 | Undisclosed Operator | Trinidad | Jul. 19 | May 20 | Plus two 2-well priced options. Contract suspended from early April 2020 to early May 2020 | |||||||
VALARIS JU-116 (Mississippi) | LT 240-C | 2008 | Saudi Aramco | Saudi Arabia | Dec. 18 | Dec. 21 | Leased to ARO Drilling(4). Planned maintenance for approx. 15 days in 2Q20 | |||||||
VALARIS JU-115 | BM Pacific Class 400 | 2013 | Mubadala Petroleum | Thailand | Mar. 19 | Jul. 20 | ||||||||
VALARIS JU-114 | BM Pacific Class 400 | 2012 | Preservation Stacked(2) | Philippines | ||||||||||
VALARIS JU-113 | BM Pacific Class 400 | 2012 | Preservation Stacked(2) | Philippines | ||||||||||
VALARIS JU-111 | KFELS MOD V-B | 2003 | Preservation Stacked(2) | Malta | ||||||||||
VALARIS JU-110 | KFELS MOD V-B | 2015 | North Oil Company | Qatar | Sep. 17 | Sep. 20 | Plus 1-year priced option | |||||||
VALARIS JU-109 | KFELS MOD V-Super B | 2008 | Chevron Available | Angola | Dec. 14 | Apr. 20 | ||||||||
VALARIS JU-108 | KFELS MOD V-B | 2007 | Saudi Aramco | Saudi Arabia | Nov. 18 | Nov. 21 | ||||||||
VALARIS JU-107 | KFELS MOD V-B | 2006 | Chevron SapuraOMV Jadestone | Australia Australia Australia | Sep. 19 May 20 Jun. 20 | Mar. 20 Jun. 20 Sep. 20 | Plus three 30-day priced options Contracted for one well Contracted for two wells | |||||||
VALARIS JU-106 | KFELS MOD V-B | 2005 | BP | Indonesia | Jan. 18 | Jan. 23 | Plus 13 1-well priced options. Planned inspection for approx. 10 days in 1Q20 and 25 days in 3Q20 | |||||||
VALARIS JU-105 | KFELS MOD V-B | 2002 | Preservation Stacked(2) | Singapore | ||||||||||
VALARIS JU-104 | KFELS MOD V-B | 2002 | Available | |||||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 7 of 12
| Valaris plc Fleet Status Report April 22, 2020 | |||
Segment / Region / Rig | Design | Year Delivered | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Comments | |||||||
Jackups | ||||||||||||||
Standard Duty - Modern | ||||||||||||||
VALARIS JU-148 (Earnest Dees) | LT Super 116-E | 2013 | Saudi Aramco | Saudi Arabia | Nov. 19 | Nov. 22 | Leased to ARO Drilling(4) | |||||||
VALARIS JU-147 (Bess Brants) | LT Super 116-E | 2013 | Saudi Aramco | Saudi Arabia | Sep. 19 | Sep. 22 | Leased to ARO Drilling(4) | |||||||
VALARIS JU-146 (EXL IV) | LT Super 116-E | 2011 | Saudi Aramco | Saudi Arabia | Sep. 18 | Sep. 21 | Leased to ARO Drilling(4) | |||||||
VALARIS JU-145 (EXL III) | LT Super 116-E | 2010 | Available | U.S. GOM | ||||||||||
VALARIS JU-144 (EXL II) | LT Super 116-E | 2010 | Fieldwood | Mexico | Apr. 20 | Oct. 20 | Contracted for two wells. Plus 1-well option | |||||||
VALARIS JU-143 (EXL I) | LT Super 116-E | 2010 | Saudi Aramco | Saudi Arabia | Oct. 18 | Oct. 21 | Leased to ARO Drilling(4) | |||||||
VALARIS JU-142 (112) | LT Super 116-E | 2008 | Preservation Stacked(2) | Malta | ||||||||||
VALARIS JU-141 | LT Super 116-E | 2016 | Saudi Aramco | Saudi Arabia | Aug. 18 | Aug. 21 | ||||||||
VALARIS JU-140 | LT Super 116-E | 2016 | Saudi Aramco | Saudi Arabia | Jul. 18 | Jun. 21 | ||||||||
VALARIS JU-76 | LT Super 116-C | 2000 | Saudi Aramco | Saudi Arabia | Jan. 15 | Dec. 22 | Planned inspection for 40 days in 1Q20 and 20 days in 2Q20 | |||||||
VALARIS JU-75 | LT Super 116-C | 1999 | W&T Offshore Available | U.S. GOM | Feb. 20 | Mar. 20 | ||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 8 of 12
| Valaris plc Fleet Status Report April 22, 2020 | |||
Segment / Region / Rig | Design | Year Delivered | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Comments | |||||||
Jackups | ||||||||||||||
Standard Duty - Legacy | ||||||||||||||
VALARIS JU-92 | LT 116-C | 1982 | Chrysaor | UK | Feb. 17 | Dec. 22 | Planned inspection for approx. 14 days in 3Q20. Operating on a reduced day rate from mid-May 2020 to late September 2020, then expected to return to full day rate until end of contract in December 2022 | |||||||
VALARIS JU-88 | LT 82 SD-C | 1982 | Saudi Aramco | Saudi Arabia | Nov. 13 | Apr. 20 | Day rate of approx. $65,000 | |||||||
VALARIS JU-87 | LT 116-C | 1982 | ExxonMobil Cox | U.S. GOM U.S. GOM | Nov. 19 Mar. 20 | Mar. 20 May 20 | Contracted for 21 wells | |||||||
VALARIS JU-84 | LT 82 SD-C | 1981 | Saudi Aramco | Saudi Arabia | Jan. 17 | Aug. 21 | Day rate of approx. $72,000. Planned inspection for approx. 60 days in 3Q20 and 60 days in 4Q20 | |||||||
VALARIS JU-72 | Hitachi K1025N | 1981 | Eni | UK | Jan. 20 | Jan. 23 | Contracted for 40-well P&A program. Planned inspection for 14 days in 2Q20. Operating on a reduced day rate from April 2020 to July 2020, then expected to return to full day rate until end of contract in January 2023 | |||||||
VALARIS JU-71 | Hitachi K1032N | 1982 | Preservation Stacked(2) | UK | ||||||||||
VALARIS JU-67 | LT 84-CE | 1976 | Pertamina | Indonesia | Jan. 19 | May 20 | ||||||||
VALARIS JU-54 | F&G L-780 Mod II-C | 1982 | Saudi Aramco | Saudi Arabia | Sep. 14 | Sep. 22 | Day rate of approx. $72,000, plus approx. $5,000 per day for upgrade costs and mobilization amortized through Sep. 22 | |||||||
VALARIS JU-37 (Arch Rowan) | LT 116-C | 1981 | Saudi Aramco | Saudi Arabia | Sep. 18 | Sep. 21 | Leased to ARO Drilling(4) | |||||||
VALARIS JU-36 (Charles Rowan) | LT 116-C | 1981 | Saudi Aramco | Saudi Arabia | Sep. 18 | Sep. 21 | Leased to ARO Drilling(4) | |||||||
VALARIS JU-22 (Middletown) | LT 116-C | 1980 | Saudi Aramco | Saudi Arabia | Sep. 18 | Sep. 21 | Leased to ARO Drilling(4) | |||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 9 of 12
| Valaris plc Fleet Status Report April 22, 2020 | |||
Segment / Rig | Design | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Comments | ||||||
Other | ||||||||||||
Drilling Management | ||||||||||||
Thunder Horse | Deepwater Semisubmersible | BP | U.S. GOM | Jan. 17 | Jan. 22 | Day rate of approx. $127,000. Plus five 1-year options | ||||||
Mad Dog | Deepwater Spar Drilling Rig | BP | U.S. GOM | Jan. 17 | Jan. 22 | Day rate of approx. $86,000 until April 2020, then reduced day rate through end of contract. Plus five 1-year options | ||||||
ARO Drilling | ||||||||||||
Jackup Rigs Owned by ARO Drilling | ||||||||||||
Gilbert Rowe | LT 116-C | Saudi Aramco | Saudi Arabia | Oct. 17 | Oct. 20 | Day rate of approx. $69,000 | ||||||
Bob Keller | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct. 17 | Oct. 20 | Day rate of approx. $130,000. Planned maintenance for approx. 5 days in 2Q20 and 15 days in 3Q20 | ||||||
J.P. Bussell | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct. 17 | Oct. 20 | Day rate of approx. $130,000. Planned maintenance for approx. 10 days in 2Q20 | ||||||
Hank Boswell | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct. 18 | Oct. 21 | Undisclosed day rate. Planned maintenance for approx. 15 days in 3Q20 | ||||||
Scooter Yeargain | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct. 18 | Oct. 21 | Undisclosed day rate. Inspection for approx. 45 days in 1Q20 | ||||||
SAR 201 | BM 200-H | Saudi Aramco | Saudi Arabia | Feb. 18 | Feb. 21 | Day rate of approx. $79,000. Inspection for approx. 30 days in 1Q20 | ||||||
SAR 202 | KFELS Super B | Saudi Aramco | Saudi Arabia | Oct. 17 | Oct. 20 | Day rate of approx. $195,000. Planned maintenance for approx. 10 days in 2Q20 | ||||||
Held for Sale | ||||||||||||
VALARIS JU-70 | Hitachi K1032N | Preservation Stacked(2) | UK | |||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
(1) Contract duration does not include any unexercised optional extensions. Contract end dates can vary based on how long it takes to complete the wells subject to the contract.
(2) Prior to stacking, upfront steps are taken to preserve the rig. This may include a quayside power source to dehumidify key equipment and/or provide electrical current to the hull to prevent corrosion. Also, certain equipment may be removed from the rig for storage in a temperature-controlled environment. While stacked, large equipment that remains on the rig is periodically inspected and maintained by Valaris personnel. These steps are designed to reduce the time and lower cost to reactivate the rig when market conditions improve.
(3) Heavy duty jackups are well-suited for operations in tropical revolving storm areas.
(4) Rigs leased to ARO Drilling via bareboat charter agreements to fulfill contracts between ARO Drilling and Saudi Aramco.
Page 10 of 12
Page 11 of 12
| Valaris plc Fleet Status Report April 22, 2020 | |||
Additional Information Regarding this Fleet Status Report
Day Rate and Terms. The day rates reflected in this Fleet Status Report are stated in U.S. dollars and are the operating day rates charged to customers, which may include estimated contractual adjustments for changes in operating costs and/or reimbursable cost adjustments for ongoing expenses such as crew, catering, insurance and taxes. The day rates, however, do not include certain types of non-recurring revenues such as lump sum mobilization payments, revenues earned during mobilizations, revenues associated with contract preparation and other non-recurring reimbursable items such as mobilizations and capital enhancements, and the impact of the fair market value adjustments to previously acquired drilling contracts. Routine and non-routine downtime may reduce the actual revenues recognized during the contract term. Additionally, we sometimes negotiate special rates and/or day rate adjustments with customers that may reduce revenues recognized.
Forward Looking Statements. Statements contained in this Fleet Status Report that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “could,” “may,” “might,” “should,” “will” and similar words and specifically include statements involving future rig day rates including adjustments with the customer; future levels of offshore drilling activity; discussions with the customer; backlog; cost adjustments; utilization; estimated rig availability; expected work commitments and contracts; contract duration, status, terms and other contract commitments; letters of intent, letters of award or other correspondence indicating an award; rig enhancement projects; new rig commitments; the expected period of time and number of rigs that will be in a shipyard for repairs, maintenance, enhancement or construction; sale leaseback transactions; scheduled delivery dates for new rigs; and the timing of delivery, mobilization, contract commencement, relocation or other movement of rigs. Such statements are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including commodity price fluctuations, customer demand, new rig supply, downtime and other risks associated with offshore rig operations; relocations; costs and difficulties related to the integration of Ensco plc and Rowan Companies plc; our ability to repay debt and the timing thereof; risks related to our joint venture with Saudi Aramco, including the timing and amount of future distributions from the joint venture or contributions to the joint venture; severe weather or hurricanes; changes in worldwide rig supply and demand, competition and technology; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties; the coronavirus global pandemic and the related health measures implemented by governments worldwide; terrorism, piracy and military action; risks inherent to shipyard rig construction, repair, maintenance or enhancement; possible cancellation, suspension, repudiation, or termination of drilling contracts, including termination for convenience (without cause), as a result of mechanical difficulties, performance, customer liquidity and finances, the decline or the perceived risk of a further decline in oil and/or natural gas prices, or other reasons; our ability to enter into, and the terms of, future drilling contracts; the cancellation of letters of intent or any failure to execute definitive contracts following announcements of letters of intent, letters of award or other expected work commitments or awards; the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; actions by regulatory authorities or by our security holders; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; environmental or other liabilities, risks or losses; debt restrictions that may limit our liquidity and flexibility; and cybersecurity risks and threats. In addition to the numerous factors described above, you should also carefully read and consider “Item 1A. Risk Factors” in Part I and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II of our most recent annual report on Form 10-K, as updated in our subsequent quarterly reports on Form 10-Q, which are available on the SEC’s website at www.sec.gov or on the Investor Relations section of our website at www.valaris.com. Each forward-looking statement contained herein speaks only as of the date of this Fleet Status Report, and we undertake no obligation to publicly update or revise any forward looking statements, except as required by law.
Page 12 of 12