Offshore drilling contractor Valaris has secured approximately $600 million in new contracts and extensions since its previous fleet status report in August 2026, increasing its total contracted backlog to around $4.8 billion.
The latest awards cover drillships, jack-up rigs and platform drilling services across several offshore regions, with the company's backlog rising from approximately $4.6 billion reported on August 5, according to the company’s most recent fleet status update, released on November 2.
Among the new floater contracts, the VALARIS DS-18 secured a two-well exploration campaign with PETRONAS Suriname Exploration & Production offshore Suriname, expected to begin in the fourth quarter of 2026 and last up to seven months.
The contract follows a previously announced Letter of Award and excludes additional services that may be billed separately, along with mobilization and demobilization compensation.
The VALARIS DS-12 received a one-well contract extension with BP Exploration Delta offshore Egypt, expected to begin in late 2027 or early 2028 in direct continuation of its existing programme. The 60-day extension will add approximately $25 million to backlog.
New Jack-Up Contracts and Extensions
In Australia, the VALARIS 107 secured a one-well contract with Emperor Energy, scheduled to begin in the second quarter of 2027, with a minimum duration of 30 days and an operating dayrate of $165,000.
The rig also received a separate contract offshore Australia for approximately 300 days, adding around $50 million in backlog, excluding mobilization and demobilization compensation. The contract, which includes priced options, is expected to begin after the rig completes its existing commitments.
Meanwhile, the VALARIS 106 secured a one-well extension with BP Indonesia, expected to begin in the fourth quarter of 2028 and last approximately 90 days, adding $10 million to contracted revenue backlog. Three additional one-well options remain.
In the North Sea, Valaris secured a multi-well plug and abandonment contract with an estimated duration of 341 days and backlog of approximately $41.5 million.
The Southern North Sea contract can be executed by any suitable and available rig in the company's North Sea fleet, with a commencement window extending to December 2030. It also includes a 19-day one-well option.
The VALARIS Norway secured a contract extension with Ithaca Energy in the UK North Sea, expected to begin in the second quarter of 2027 and last approximately 200 days. The extension adds around $27 million in backlog, with further priced options totalling 163 days.
The VALARIS 122 received two extensions with INEOS, covering operations in the Danish and UK sectors of the North Sea.
The Danish extension is scheduled to begin in February 2027 for 126 days at a dayrate of $115,000, followed by a 158-day UK campaign starting in July 2027 at $125,000 per day. The contract also includes additional options totalling 541 days.
Separately, an amendment to the previously announced VALARIS 72 contract with Eni in the East Irish Sea will see approximately eight and a half months of work transferred to the VALARIS 121, which is expected to begin operations in November 2026.
The change brings forward the expected completion of the VALARIS 72 program from September to March 2027 and increases contracted backlog by approximately $17 million.
The VALARIS 248 also secured a 61-day extension with Seatrium in the UK North Sea to provide accommodation support for an offshore wind project. The extension began in October 2026 and added more than $5 million in backlog.
Platform Services and Fleet Updates
Valaris secured a three-year service contract with BP to support drilling operations on the Mad Dog and Thunder Horse platforms in the Gulf of America.
The contract is expected to begin in January 2027, in direct continuation of the existing agreement, adding approximately $290 million to backlog.
Separately, Valaris’ joint venture with Aramco, ARO Drilling, secured three-year contract extensions with Aramco for five ARO-owned rigs, with the extensions beginning in October 2026. According to Valaris, all of its and ARO rigs operating in the Middle East remain under contract.
In other fleet developments, the VALARIS MS-1 semi-submersible was sold for recycling. Valaris also terminated the previously announced sale of the VALARIS 111 jack-up for recycling and subsequently sold the rig to another buyer for conversion into a mobile offshore production unit (MOPU).
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