By Brazil Stock Guide – Shell Brasil has signed a long-term contract with Valaris Ltd. for the use of the VALARIS DS-8 ultra-deepwater drillship, locking in critical offshore capacity to advance the Orca project off Brazil’s coast. The agreement, valued at about $300 million, is set to begin in the first quarter of 2027, according to a statement released on Thursday (Dec. 11).
Shell represents the Orca consortium alongside Ecopetrol (30%), TotalEnergies (20%), with Pré-Sal Petróleo S.A. (PPSA) acting as manager of the production-sharing contract. The drillship will be primarily deployed for drilling and completion activities at Orca, previously known as Gato do Mato, one of Shell’s key deepwater developments in Brazil.
“This contract is an important milestone for Shell Brasil, as it allows us to move forward with the Orca project and unlock new opportunities across our asset base,” said Prithipal Singh, vice president of operated assets in Brazil. He added that the deal underscores Shell’s long-term commitment to the country and to value creation for partners and stakeholders.
The work program will take place in ultra-deep waters and rely on the VALARIS DS-8, one of the most technologically advanced drillships in operation globally. Designed for Brazil’s challenging offshore environment, the rig has a declared operating water depth of up to 10,000 feet, with the potential to be upgraded to 12,000 feet (around 3,658 meters), and is equipped for complex operations under stringent environmental and safety standards.
Beyond Orca, the contract scope also covers subsea intervention activities at Parque das Conchas (BC-10) and decommissioning work at Bijupirá and Salema, both Shell-operated assets. The agreement includes optional extensions for exploration drilling, providing additional flexibility as Shell reassesses its offshore portfolio.
Brazil remains a core growth market for Shell globally. The company holds interests in 70 upstream contracts in the country and participates in 20 offshore production units currently in operation, positioning Shell as Brazil’s second-largest oil producer, with average daily output exceeding 400,000 barrels of oil equivalent.
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