The resurgence in the offshore energy market has been good news for shipyards primarily in Asia that were holding long-delayed drillships hoping they would find a market. In the latest development, Hanwha Ocean has completed the clear-out of vessels long ago contracted by Daewoo Shipbuilding & Marine Engineering with Valaris confirming it has exercised a purchase option for two decade-old vessels.
Valaris reported that it has taken delivery of the two “newbuilds” after exercising a purchase option reached with the shipyard in August and eight years after the vessels were initially scheduled to be delivered. The company reports that the vessels, which are now known as Valaris DS-13 and Valaris DS-14, were acquired for an aggregate purchase price of approximately $337 million.
“We are delighted to add these two rigs, the highest specification drillships remaining at the South Korean shipyards, to our fleet,” said Anton Dibowitz, President and Chief Executive Officer of Valaris. “These additions increase our drillship fleet to 13 rigs, reinforcing its position as one of the most technically capable in the industry. Based on our positive market outlook, growing future demand, and strong customer interest in these rigs, we believe that the purchase of these high-specification drillships at compelling prices will generate attractive returns.”
Valaris gained the option to acquire the vessels in August 2023 after reporting a strong increase in activity. Since mid-2021, the company which had gone through bankruptcy and consolidation due to the market downturn, reports the contracting of six of its stacked drillships.
DS-13 and DS-14 were originally ordered in 2012 by Atwood Oceanics from DSME during a continued market boom. The construction contract called for delivery of the vessels in 2015 but with the market slide, Atwood deferred delivery. Ensco acquired Atwood in 2017 gaining the rights to the two vessels and two years later it in turn merged with Rowan to form Valaris. The company renewed the purchase option in August citing the vessels as among the best options remaining at the South Korean shipyards.
Each of the vessels which is 104,000 displacement tons, was designed with a maximum 40,000-foot drilling depth. They are double-hull vessels with two blowout preventers, a design feature the company said would require $50 million to add to other vessels.
The delivery of these two vessels follows a similar agreement in September between the shipyard and Transocean. The company purchased another decade-old drillship originally ordered by Seadrill, then anticipated to be sold to Northern Drilling, before Transocean stuck a deal with DSME in late 2022 that led to it taking delivery of the vessel now known as Deepwater Aquila during the third quarter of 2023.
Valaris’ Dibowitz recently told investors that he believed the yards were close to clearing out the last of the idle tonnage. He predicted it was unlikely that any other vessels would be ordered because of the high cost of construction and long delivery times. Valaris got a “bargain price” for the vessels and expects to see a tight market and increasing demand for drillships going forward.
DS-13 and DS-14 will be mobilized from South Korea to Las Palmas, Spain, where the rigs will be stacked until they are contracted for work. Valaris anticipates a further capital expenditures of approximately $35 million in 2024 primarily related to mobilization costs.
In June, a UK Royal Navy destroyer and Dutch Royal Navy ship safely moored in Odessa, Ukraine, were spoofed to locations off-shore of a Russian naval base on Crimea. One week later, it was a US Navy ship moored in the same port that was spoofed (above). These are interesting cases in several ways. First, how […]
A massive fire broke out at the Port of Beirut on Thursday, incinerating a warehouse full of tires and oil within the port’s free zone. The same area was heavily damaged in the ammonium nitrate explosion that leveled the central port area and the adjacent waterfront on August 4. According to Lebanon’s civil defense agency, […]
Over the course of the past five days, the Australian Maritime Safety Authority arranged a medical intervention for an injured aboard a freighter in the Indian Ocean. On Saturday evening, the Spliethoff tweendecker Dolfijngracht called for assistance while under way about 1,000 nauical miles off the coast of Western Australia. A crewmember had sustained serious […]
The UK government’s new post-Brexit tariff regime will result in both winners and losers. The new regime is set to replace the European Union’s Common External Tariff from the end of the Brexit Transition Period on December 31, 2020. The UK’s commitment to the ongoing Brexit process and ending the UK’s transition from EU membership […]
As the shipping industry works to develop its path towards decarbonization, one large shipowner has decided to use the existing technology to start a conversion to methanol while longer-term solutions continue to be developed. Eastern Pacific Shipping, which has a fleet of containerships, dry bulk carriers, and tankers totally 15 million dwt, will work with […]
The First DP2, Twin-Hulled SOV in the World, NB72 Groene Wind met the Sea on September 29. 2020 in Yalova, Turkey. The Groene Wind will be directly chartered to Siemens Gamesa Renewable Energy for the maintenance of the Rentel and Mermaid & Seastar (known as SeaMade) offshore wind farms in Belgium. This is the first DP2, […]
The U-Freight Group (UFL), with its considerable involvement in eCommerce logistics, says that the latest statistics showing that global e-commerce sales hit $25.6 trillion in 2018 are a further vindication of its decision to enter this sector of the international freight market several years ago. The latest available estimates, up 8% from 2017, were recently […]
DSV Belgium has solid experience in the transport of pharmaceutical products for different customers. With a pharma hub based at Brussels Airport a lot of experience and know-how has been built up over the years. Last weekend, the forwarder handled one hundred million mouth masks, an important milestone for its Belgian organisation that has put […]
With close to 100 daily cargo flights operated to a destination network spanning more than 65 cities across six continents, Emirates SkyCargo is delivering essential supplies and commodities to people around the world. The air cargo carrier is currently operating 11 Boeing 777 freighter aircraft, each with a capacity to transport about 100 tonnes of […]
Operators can continue to use pilots and other crew members who have unable to comply with certain training, recent experience, testing, and checking requirements due to the COVID-19 outbreak in support of essential operations. Additionally, this Special Federal Aviation Regulation (SFAR) provides regulatory relief to certain persons and pilot schools unable to meet duration and […]
Callan Marine is serving as the prime contractor to the Texas Department of Transportation for a maintenance dredging project located at the Bolivar Ferry Terminal, in Galveston, Texas. Work began in May and is estimated to be complete in late July 2020. The project consists of the removal of 600,000 cubic yards of material and […]
Astral Aviation has increased its intra-African network with cargo freighters during the pandemic. While there has been a reduction in capacity to, from, and within Africa, which has been caused by a stoppage of passenger flights and limited frequencies on freighter aircraft, Astral Aviation continues to operate cargo freighters from its Nairobi hub to 13 destinations […]
The naval forces of the US and Bahrain recently staged a joint force training exercise which showcased the interoperability between coalition warships operating I the Arabian Gulf. Coalition Task Force Sentinel executed combined exercise Sentinel Shield supporting Sentry and Sentinel patrols in the coalition’s area of operations. The guided-missile destroyer USS John Paul Jones and […]
Best known as a leading passenger airport serving Germany’s most populated federal state North Rhine-Westphalia, Düsseldorf has become transformed into a vital distribution point, during the COVID 19 pandemic, for medical equipment and other life-saving goods, mostly from China. Gerton Hulsman, managing director of cargo operations, reports that the handling teams are working hard to […]
Emirates SkyCargo has expanded its weekly scheduled cargo flight operations to cover 75 destinations across six continents. Through its wider reach, Emirates SkyCargo is able to transport essential commodities and other urgently needed cargo more rapidly across the world, allowing exporters and importers across markets to benefit from direct access to widebody cargo capacity. Some […]
The National Transportation Safety Board (NTSB) has released a Marine Accident Brief about an accident that occurred on April 15, 2019, involving the towing vessel DeJeanne Maria which struck the end of a submerged dredge pipeline while pushing two spud barges to the Gulf of Mexico. The incident occurred on the Mississippi River in Pass […]