Valaris adds $220 million in offshore drilling contract backlog and sells two rigs
Valaris Limited announced new offshore drilling contracts and extensions that add roughly $220 million to its contract backlog. The awards include a two‑well PETRONAS exploration contract for the VALARIS DS‑18 drillship starting in Q4 2026, a 300‑day jack‑up contract in Australia, and a 341‑day plug‑and‑abandonment program in the Southern North Sea. The company also sold the semi‑submersible VALARIS MS‑1 and jack‑up VALARIS 111 for recycling in September 2026.
Why it matters
According to the analysis in material 4, the added backlog modestly improves near‑term utilization but is not expected to materially change Valaris' short‑term risk‑reward profile. The sale of two rigs reduces fleet size and may affect future capacity.
Key facts
- 1Valaris announced new contracts and extensions totaling approximately $220 million in contract backlog. euro-petrole.com
- 2The PETRONAS two‑well exploration contract for drillship VALARIS DS‑18 is expected to commence in the fourth quarter of 2026 and run up to seven months. euro-petrole.com
- 3The VALARIS 107 jack‑up contract offshore Australia is estimated to last about 300 days. euro-petrole.com
- 4The Southern North Sea plug‑and‑abandonment fleet award has an estimated revenue backlog of $41.5 million, a duration of 341 days and includes an annual cost escalation mechanism. euro-petrole.com
- 5The VALARIS 122 extension with INEOS in the Danish North Sea is for 126 days at a day rate of $115,000, with optional work totalling 699 days. euro-petrole.com
- 6Valaris sold the semi‑submersible VALARIS MS‑1 and jack‑up VALARIS 111 for recycling in September 2026. euro-petrole.com
Summary written by AlphAI from 6 of 6 sources. Not investment advice. Figures are as stated by the linked sources.