Valaris, an offshore drilling vessel owner, announced that its drilling vessel “Valaris DS-8” has signed a lease agreement with oil giant Shell to provide services for the Orca project (formerly the Gato do Mato project) in Brazilian waters.
Under the agreement signed with Shell, the Valaris DS-8 is expected to commence operations in the first quarter of 2027. The anticipated operational period is approximately 800 days, with the contract valued at around $300 million. This includes an option for an extension totaling approximately one year.
At present, the Valaris DS-8 is operating in Brazilian waters under a three-year contract with Petrobras, which is set to expire in December 2026.
The “Valaris DS-8” is an ultra-deepwater drilling vessel, designed using the Samsung GF12000 platform and built by Samsung Heavy Industries. It was delivered in 2015. The vessel is approximately 230 meters long and 38 meters wide, equipped with a DP3 dynamic positioning system, designed to operate in water depths of 12,000 feet, and has a maximum drilling depth of 40,000 feet.
Recently, Valaris secured a charter agreement for another of its drilling rigs, the Valaris DS-12, with BP. The contract is expected to last 350 days and has a total value of approximately $140 million, including mobilization costs. So far this year, Valaris has secured over $2.5 billion in order backlog, providing strong support for future earnings and cash flow.
The Orca project currently estimates recoverable reserves of approximately 370 million barrels of crude oil and plans to install a floating production, storage, and offloading vessel (FPSO) with a daily production capacity of 120,000 barrels of crude oil. The project is expected to commence production in 2029, with initial operations maintaining reservoir pressure through natural gas reinjection. Future options include transporting natural gas to onshore facilities.