Equinor lets rig contract for Bacalhau license offshore Brazil

Equinor Brazil, as operator of the Bacalhau license, let a drilling contract to Valaris Ltd. for work offshore Brazil.

The Valaris DS-17 is expected to drill an appraisal well, plug an old exploration well, and conduct additional drilling scope in the country, Equinor said in a release July 5.

“The second rig in Bacalhau will expand our drilling capacity in Brazil and will further enhance our understanding of Bacalhau North through an ADR (Reservoir Data Acquisition) well,” said Veronica Rezende Coelho, Equinor’s country manager in Brazil.

Drilling services and other additional services such as remotely operated vehicle, managed pressure drilling, casing running, slop treatment and cuttings handling are included in the contract. A fuel reduction incentive has also been agreed on.

DS-17, an ultra-deepwater drillship, is capable of operating in water depths over 3,600 m.

The rig will be reactivated for the 540-day contract, which is expected to begin mid-2023. The total contract value, as estimated by the service provider, is $327 million, including an upfront payment of $86 million for mobilization costs, a contribution towards reactivation costs, and capital upgrades, Valaris said in a separate release July 5. 

Equinor is operator at Bacalhau with 40% interest. Partners are ExxonMobil (40%), Petrogal Brasil (20%), and Pré-sal Petróleo SA (production sharing agreement manager).