Valaris Set to Emerge from Bankruptcy as Reorganization Plan Approved
Offshore drilling company Valaris, the world's largest by fleet size, has received approval from the United States Bankruptcy Court for the Southern District of Texas of its prearranged plan of reorganization, and has agreed with Korea's Daewoo to delay deliveries of two newbuild drillships.The offshore driller filed for bankruptcy in August 2020, in a move to restructure its debt load and reduce debt by more than $6.5 billion.The company this week said that in addition to bankruptcy court confirmation, the plan received support from approximately 80% of the company's unsecured notes and bank lenders representing 100% of the company's credit facility claims.
Valaris Says Rigs May Be Idle for Up to Two Years
Offshore drilling contactor Valaris, which is exploring a bankruptcy restructuring, on Thursday said it could take up to two years to reactivate idle equipment as contracts dry up during a historic rout in oil prices.Global oil markets have collapsed since the beginning of March as the coronavirus pandemic has crushed fuel demand. Expensive offshore drilling projects have been halted or delayed, creating an uncertain outlook for service firms that had hardly recovered from the last oil price crash.London-based Valaris, the result of the 2019 merger of Ensco Plc and Rowan Companies, posted a $2.81 billion asset impairment charge in the first quarter.
EnscoRowan Changes its Name to Valaris
UK-based offshore drilling contractor EnscoRowan announced that it will change its name to Valaris, effective July 31, 2019.The London-headquartered firm said in a stock exchange announcement that its ordinary shares will trade under the new ticker symbol VAL following its name change.According to the company, the name Valaris was selected following a comprehensive process that included participation from the company’s employees around the world, feedback from customers and other market research."This new name was inspired by the Latin root meaning strength, courage and signifying something of value, and the Valaris name embodies the company’s ambition to be ‘Boldly First’ as the leader in our industry…
Rowan Reliance Awarded Fieldwood Contract
Offshore drilling contractor Rowan Companies plc announced Monday that its drillship Rowan Reliance has been awarded a contract in the U.S. Gulf of Mexico by Fieldwood Energy LLC.The contract is for a firm term of one year plus three 90-day options, and is expected to commence the first quarter of 2019. The R-Class ultra-deepwater Rowan Reliance is currently warm stacked offshore Louisiana in the U.S. Gulf of Mexico.Tom Burke, Rowan's president and CEO, said, "We are excited to continue our long-standing relationship with Fieldwood, a premier offshore operator, and look forward to a successful, long-term partnership with this major player in the Gulf of Mexico."In addition, Cantium has extended its previously announced contract for the EXL III in the U.S. Gulf of Mexico by three months.
Chrysaor Contracts Rowan jack-up for North Sea
Rowan Companies announced that the Rowan Gorilla VII, a Super Gorilla Class ultra-harsh environment jack-up rig, has been awarded an 18-month program by Chrysaor in the UK sector of the North Sea. The contract is expected to commence imminently for 18 months of work followed by two, one-year options. The Gorilla VII has recently undergone significant life enhancements including a new top drive, and upgrades to the BOP and drilling controls. Tom Burke, President and Chief Executive Officer, commented, "Rowan's solid position in the harsh environment North Sea jack-up region is further strengthened by this commitment from Chrysaor. Rowan is a global provider of contract drilling services with a fleet of 27 mobile offshore drilling units…
Rowan Buys Two Jack-up Rigs from Petrobras
Offshore driller Rowan Companies plc said it has purchased two LeTourneau Super 116E jack-up rigs, the P-59 and P-60, both delivered new into service in 2013, in a public auction from a subsidiary of Petroleo Brasileiro S.A. for $38.5 million per unit. As reported in May 2017, Rowan was the high bidder in a Petrobras public auction with a bid price of $30 million per rig. While the high bid was not accepted by Petrobras, after negotiations, both parties agreed to the revised price. Rowan sad it intends to mobilize the jack-ups to the Middle East from their current location in Brazil in late first quarter 2018. Tom Burke, President and Chief Executive Officer, said, “We consider this purchase an opportunistic investment, made near a cyclical low, at a highly attractive price.
Shipbuilding: Mega Yards
The Woodmac report we saw offered us cause for pause — “Strong activity from the (major oil companies)” while “national oil companies have tightened their purse strings.” What Maritime Reporter found, was that national oil companies — nation-builders, for many — are putting their money in affiliate shipyards. The hope of two, new shipbuilding giants is jobs, innovation, national survival and export security. The model is to invite those who have done it before: Koreans, Japanese, French and a contractor with offshore and marine experience.
