Valaris Limited said it has signed a multi-year drilling contract with Shell offshore Brazil that will use the drillship VALARIS DS-8, according to a company press release. The contract is valued at about $300 million.
Work for VALARIS DS-8 is expected to start in the first quarter of 2027 and run for roughly 800 days. The agreement also includes options that could add around one more year of activity. At $300 million, the award is equivalent to about 12% of Valaris’ current market capitalization of $4.04 billion and will add to the company’s existing $2.5 billion contract backlog.
The drillship will be assigned to Shell’s Orca project in Brazilian waters, which Valaris said points to continued interest from international oil companies in offshore developments in Brazil.
According to InvestingPro data, the share price of Valaris has risen more than 31% so far this year as the company continues to secure new work. “We are pleased to have been selected by Shell to provide drilling services on the Orca project,” said Anton Dibowitz, President and Chief Executive Officer of Valaris. He added that the company has booked more than $2.5 billion in backlog year-to-date.
Valaris describes itself as an industry-leading offshore drilling services provider with a fleet that spans ultra-deepwater drillships, semisubmersibles, and shallow-water jackups across key offshore regions.
The latest contract is being signed as offshore drilling activity in Brazil continues despite the global energy transition. Shell has kept its presence in Brazilian deep-water fields, where projects are still viewed as viable investments even when markets are volatile.
Valaris Limited, incorporated in Bermuda, trades on the New York Stock Exchange under the ticker VAL.
In a separate update, Valaris recently reported third-quarter 2025 revenues of $596 million, down from $615 million in the previous quarter. During the same period, the company secured a contract with BP Offshore Egypt worth about $140 million, adding to its portfolio of offshore drilling work.
Broker BTIG raised its price target for Valaris shares to $65 while maintaining a Buy rating, citing the outlook for offshore drilling. Global floating rig activity has eased, with an average of about 110 rigs working – the lowest level since April 2022 – but still roughly 20% above 2020 levels.
