Shell has handed drilling contractor Valaris $60 million (£51.8m) to continue using one of its jack-ups in the North Sea.
The four-well contract extension for the Valaris 122 heavy-duty harsh environment rig is due to run for around 500 days.
It will kick in as soon as the existing program with the supermajor finishes.
According to July’s fleet status report, the Valaris (NYSE: VAL) vessel is already in the UK North Sea having been contracted by Shell (LON: SHEL) for two campaigns.
The first kicked off in 2020 and is due to wrap up in November, with the second expected to start immediately after that and run until April 2023.
This latest extension was awarded subsequent to Valaris issuing its most recent fleet status report in July.
North Sea operators are currently scrambling to secure drilling rigs to support their projects, causing day rates to shoot up.
DNO has also exercised a one-well option in the UK for the Valaris 247 harsh environment jack-up.
Due to run for around 45 days, the deal will follow straight on from the existing work program.
The two North Sea deals are in addition to two other contract awards Valaris has announced today, with a total backlog of $149m.
Eni Mexico has struck a three-well contract, expected to commence in the fourth quarter of 2022, with the firm for the Valaris DPS-5 semi-submersible.
It is expected to run for 240 days, with an operating day rate of $313,500, plus a mobilization fee of approximately $1.2m.
A one-well contract has also been secured with an undisclosed operator offshore Australia for heavy duty modern jack-up Valaris 107.