Valaris Limited (NYSE:VAL) announced on Wednesday that it has secured a 1,064-day contract extension with Petrobras (NYSE:PBR) for the drillship VALARIS DS-4.

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Secures Significant Contract Extension

The company expects the contract extension to commence in November 2027, adding approximately $447 million to the company’s contract backlog.

Also, the company has adjusted day rate for the current contract. This will reduce backlog by roughly $21 million between April 2026 and November 2027.

President and CEO Anton Dibowitz emphasized the importance of extending the partnership with Petrobras, citing Brazil as a major source of deepwater demand. He noted that the contract extension secures work for DS-4 into 2030, supporting future earnings and cash flow.

PETRONAS Suriname and Halliburton Deal

Also, Valaris’ subsidiary, Ensco UK Drilling Ltd., penned a deal with PETRONAS Suriname and Halliburton Co (NYSE:HAL) to develop PETRONAS Suriname's offshore assets.

The partnership combines Valaris' drilling expertise, PETRONAS' project knowledge, and Halliburton's subsurface and digital solutions, streamlining planning, integration, and operations.

Dibowitz added, “This agreement reflects our strong track record of delivering operational excellence, the capabilities of our high-specification fleet, and our ability to collaborate closely with our customers and partners.”

These agreements strengthens Valaris’s position in the offshore drilling market, where it operates a high-quality fleet of ultra-deepwater drillships, semisubmersibles, and jackups.

VAL Price Action: Valaris shares were down 1.38% at $96.69 at publication on Monday, according to Benzinga Pro.

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