Valaris Wins Major Contract Offshore West Africa Worth $135 Million

Valaris Limited VAL, an offshore drilling contractor, has secured an award for its ultra-deepwater Valaris DS-15 drillship for work offshore West Africa. The estimated duration of the contract is 250 days, with a total contract value of $135 million.

The contract involves drilling five wells for an undisclosed operator and does not include any additional services. The assignment is expected to begin in the third quarter of 2026. Additionally, the contract includes priced options for up to five wells. These priced well options have an estimated total duration of 80 to 100 days.

VAL has mentioned that as part of this contract, the rig will undergo upgrades to add an improved managed pressure drilling system. The Valaris DS-15 drillship boasts a GustoMSC P10,000 design and has a maximum drilling depth of up to 40,000 feet. The new assignment strengthens Valaris’ presence offshore West Africa. The company believes that its current capabilities position it well to capitalize on future opportunities in the region.

VAL’s Zacks Rank and Key Picks

VAL currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the energy sector are Archrock Inc. AROC, EQT Corporation EQT and Galp Energia SGPS SA GLPEY. While Archrock currently sports a Zacks Rank #1 (Strong Buy), EQT and Galp Energia each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.

EQT is the largest natural gas producer in the United States. EQT holds numerous premium natural gas drilling locations in the core Appalachian Basin, securing a solid production outlook. EQT is poised to benefit from the rising demand for natural gas as a cleaner-burning fuel. The recent rise in natural gas prices is also anticipated to positively impact its profitability.

Galp Energia is a Portuguese energy company, engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp had estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region.

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This article originally published on Zacks Investment Research (zacks.com).

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