Valaris introduced that it has acquired a $200 million money fee upon the conclusion of beforehand disclosed arbitration proceedings in opposition to Samsung Heavy Industries.
Tom Burke, President and Chief Executive Officer, stated, “We proceed to make great progress on a number of fronts. Most notably, we concluded arbitration proceedings in opposition to Samsung Heavy Industries and have acquired a $200 million money fee that instantly bolsters the Company’s monetary place. We additionally received new contracts and extensions for our rig fleet over the previous month which have added roughly $100 million of contracted income backlog and can profit our future working money flows.”
As beforehand disclosed, an arbitration tribunal awarded the Company $180 million in damages, along with the fitting to assert curiosity and prices, in relation to proceedings the Company introduced in opposition to Samsung Heavy Industries (SHI) for losses incurred in reference to the DS-5 drilling providers settlement with Petrobras. (Note: On January 2016, Petrobras canceled its contract with Ensco for the drillship DS-5 over corruption prices).
The English High Court just lately denied the events’ functions for depart to attraction the tribunal’s $180 million damages award. Following this resolution, the events reached an settlement and SHI has paid Valaris $200 million in money. This fee, together with the beforehand disclosed settlement and normalization of its enterprise relationship with Petrobras, concludes the Company’s dispute surrounding the DS-5 drillship.
Valaris has additionally continued successful new work for its high-quality rig fleet, as new contracts and contract extensions with related income backlog of roughly $100 million have been awarded to the Company since its final contracting replace press launch on November 25, 2019:
• VALARIS DS-10 contract prolonged as a result of train of a one-year priced choice with Shell offshore Nigeria from March 2020 to March 2021;
• VALARIS JU-107 contract prolonged as a result of train of a one-well priced choice with Chevron offshore Australia, with an estimated length of 30 days from late February 2020 to late March 2020; the rig has additionally been awarded a two-well contract with Jadestone Energy offshore Australia, with an estimated length of 115 days from June 2020 to September 2020;
• VALARIS JU-101 awarded a three-well contract with Ithaca Energy within the North Sea that’s anticipated to start in March 2020, with an estimated length of 45 days; and
• VALARIS JU-75 awarded a one-well contract with Walter Oil & Gas within the U.S. Gulf of Mexico, which commenced in late December 2019, with an estimated length of 40 days.
(Source: Valaris – Image: Ensco DS-5 in Tenerife in May 2016/Sergio Hernandez de Leon)
The put up VALARIS RECEIVES $200 MILLION TO SETTLE THE DS-5 DRILLSHIP DISPUTE WITH SAMSUNG appeared first on Energy Global News.