Valaris Lifts Contract Backlog for its Drilling Rigs to $4.2B

Valaris DS-9 drillship (Credit: ExxonMobil Egypt)

Offshore drilling company Valaris has secured over $1 billion of new contracts and extension for its drilling rigs since its previous fleet status report published mid-February 2025.

Valaris’ contract backlog, excluding lump sum payments such as mobilization fees and capital reimbursements, increased to approximately $4.2 billion from approximately $3.6 billion as of February 18, 2025.

Floater Contract Awards

Valatris secured two-year contract offshore West Africa for drillship VALARIS DS-10. The contract is expected to commence late in the second quarter or in the third quarter 2026. The total contract value for the firm term is $352 million.

The total contract value does not include the provision of additional services. An additional rate will be charged when MPD services are provided. The contract includes two unpriced options, each with a duration of one year.

Also, the company saw a six-month priced option exercised by ExxonMobil for drillship VALARIS DS-9. The six-month option will start in January 2026 in direct continuation of the existing firm program.

New Jack-up Contracts and Extension

When it comes to jack-up rigs, Valaris secured extensions of existing bareboat charter agreements (BBC) through the end of April 2025, or completion of well in progress, for four jack-ups - VALARIS 116, 140, 146 and 250 - that are leased to ARO Drilling to undertake drilling contracts offshore Saudi Arabia.

Also, Valaris signed five-year BBC extensions for five jack-ups - VALARIS 116, 140, 141, 146 and 250 – that are leased to ARO to undertake drilling contracts offshore Saudi Arabia. The BBC extensions for VALARIS 116, 140, 146 and 250 are effective from May 2025, and for VALARIS 141 from August 2025, in direct continuation of their existing BBCs.

As for VALARIS 116 and 250, the rigs expected to be out of service at zero rate for approximately six months each from October 2025 to March 2026 to complete special periodic surveys and major equipment recertifications. These out-of-service periods are included within each rig’s five-year BBC duration.

Also, the company was awarded a 545-day contract for jack-up VALARIS 117 with an undisclosed operator offshore Trinidad. The contract is expected to start in the third quarter 2026.

The operating day rate is in line with recent market rates in the region. The contract includes a 185-day priced option.

In addition, Valaris secured a 730-day contract for VALARIS 248 in the North Sea operating region. The contract is expected to begin in November 2025.

Furthermore, a 180-day priced option has been exercised by Esso Australia or jack-up VALARIS 107. The priced option period is expected to start in November 2025 in direct continuation of the current program.

When it comes to other updates from Valaris on its fleet, the company's semi-submersible drilling rigs VALARIS DPS-3, DPS-5 and DPS-6 have been sold for recycling and retired from service in April 2025. Total sales proceeds were approximately $10 million.