Valaris Jack-Up Rig Valaris 144 Arrives in Angola for Major Contracts

Valaris Ltd.’s jack-up rig Valaris 144 has arrived in Angola to begin drilling contracts, including a single well contract worth $8.5 million and a 13-well contract valued between $149-$156 million. This marks a significant expansion in their operations despite the company’s current Zacks Rank of #5 (Strong Sell).

Valaris Ltd., an offshore drilling contractor, has announced the arrival of its jack-up rig, Valaris 144, in Angola to initiate a new drilling assignment. The rig completed its previous project in Corpus Christi, Texas, before embarking on its journey to Angola in late January.

In 2024, Valaris secured a contract with an undisclosed operator in Angola to drill one well offshore, commencing in the first quarter of 2025, with an estimated contract duration of 45 days and a total value of approximately $8.5 million.

Additionally, the Valaris 144 has achieved a 13-well contract with the same operator in Angola, projected to span 730 to 770 days and begin in the second quarter of 2025. This contract has an estimated total value ranging from $149 million to $156 million.

Valaris Ltd. currently holds a Zacks Rank of 5 (Strong Sell). However, several other companies in the energy sector hold better ratings. Archrock Inc. has a Zacks Rank of 1 (Strong Buy), while Matador Resources Corporation and NextDecade Corporation both have a Zacks Rank of 2 (Buy).

Archrock focuses on midstream natural gas compression services, providing stable fee-based revenues. Matador Resources excels in exploration and production, consistently surpassing output expectations. NextDecade is actively expanding its liquefaction capacity for liquefied natural gas (LNG), addressing the growing demand for this fuel during the energy transition.

In conclusion, Valaris Ltd. has effectively positioned its jack-up rig, Valaris 144, in Angola, marking the commencement of significant drilling contracts. The company has secured lucrative agreements that not only highlight operational capability but also align with the growing demand for offshore drilling services in the region. Despite a lower Zacks Rank, Valaris’s ongoing contracts may enhance their market presence in the future.

Original Source: www.zacks.com