Norway’s Equinor has contracted drillship Valaris DS-17 to conduct a development drilling program for its BM-C-33 Raia project in the deep waters offshore Brazil. Drilling activities are slated to start in 2026 with the objective of drilling six wells leading up to first production in 2028. The overall contract value is estimated at $498 million, which includes a gap period, mobilization, modifications, and integrated services. With an estimated contract duration of 852 days, that equates to an eye-opening day rate of $584,500. The drillship is earning $447,000 under its current deal with Equinor that runs to April 2025.
During the gap period between the current scope for Bacalhau field and the commencement on Raia project, the drillship may be available for alternative work. The contract also includes two options.
“This contract award is a testament to the quality of our crews and the collaborative nature of our relationship with Equinor,” said Valaris President and CEO Anton Dibowitz. “We are grateful to Equinor for the investments they have made in leading-edge safety and automation technology on Valaris DS-17 and the trust they have placed in us to execute their development programs offshore Brazil. In addition, this contract further underscores our track record of delivering high-performing assets following a reactivation.”
The estimated $9-billion Raia development is one of the most significant gas projects underway in Brazil. Located in the pre-salt region of Campos Basin, approximately 200 km from shore, in water depths up to 2900 m. The field contains natural gas and oil/condensate recoverable reserves of more than 1 billion BOE.
Equinor and its partners made a final investment decision on Raia in May 2023. The development will center around an FPSO capable of processing gas and oil/condensate and specifying these for sale without a need for further onshore processing. The FPSO’s production capacity will be 16 million m3/D of gas with average exports expected of 14 million m3/D.
In addition to securing the rig, Equinor has, on behalf of the partners, awarded SLB, Baker Hughes, and Halliburton agreements for drilling and well services for the Raia project worth around $109 million. The operator said the award further builds on the collaboration and experience with the three awarded suppliers worldwide and called them “essential to ensure safe and efficient drilling and well operations.” SLB will be the main service supplier, with complementary services provided by Baker Hughes and Halliburton.
Raia is expected to be a key contributor to the further development of the Brazilian gas market. When on stream, it could provide up to 15% of total gas demand in Brazil.
“Raia is part of the next generation of projects in the Equinor portfolio,” said Veronica Coelho, Equinor’s country manager in Brazil. “It will have a significant value for the owners while it contributes locally with significant ripple effects. Our purpose is that we keep bringing energy for people and progress for society, always searching for better technologies, partnerships, and solutions.”
Equinor operates Raia with a 35% working interest. Partners Repsol Sinopec Brasil and Petrobras hold 35% and 30% stakes, respectively.
Raia was discovered in 2010 by Repsol Sinopec. Equinor became the operator in 2016.
