Offshore driller Valaris has secured a batch of new contracts and extensions, with an associated contract backlog of approximately $220m.
The company won a contract with Petronas for the Valaris DS-18 drillship in Suriname. The contract, following a previously announced letter of award, is expected to commence in the fourth quarter of 2026 and run for up to seven months. The contract backlog excludes additional services that may be provided and billed separately, as well as compensation for mobilisation and demobilisation.
After this contract ends, the drillship will move to a 914-day contract with Occidental in the US Gulf of Mexico. The contract also has two one-year options,
A new contract offshore Australia was awarded to the Valaris 107 jackup with an unnamed client. The contract is expected to commence following its current commitments and has an estimated duration of 300 days. The contract backlog of approximately $50m excludes compensation for mobilisation and demobilisation. The contract also includes priced options.
As for current commitments, the rig is currently wrapping up its contract with Woodside and will then move on to a contract with GB Energy, which will be completed in March 2027.
Another jackup deal, also with an undisclosed client, is a multi-well plug and abandonment contract in the Southern North Sea. The contract is a fleet award under which operations may be performed by any suitable and available rig within the Valaris North Sea fleet. The contract has a commencement window through December 2030 and an estimated duration of 341 days. The contracted revenue backlog is estimated to be $41.5m and is subject to an annual cost escalation mechanism effective from the contract execution date. The contract also includes a one-well option with an estimated duration of 19 days.
The company also secured a contract extension for Valaris 122 from Ineos for a project in the Danish North Sea. The contract extension is expected to commence in February 2027 in direct continuation of the existing program and has an estimated duration of 126 days. The operating day rate is $115,000. The contract includes additional options with an estimated total duration of 699 days for work in the UK and Danish North Sea.
A previously announced contract for the Valaris 72 with Eni in the East Irish Sea has been amended. The Valaris 121 will undertake eight and a half months of the program, expected to commence operations in November 2026 as a direct continuation of its existing program with another operator. Valaris 72 is now expected to complete its program in March 2027, rather than September 2027. The amendment increases contract backlog by approximately $17m.
The final jackup contract is a 31-day contract extension with Seatrium in the UK North Sea. The Valaris 248 will provide accommodation support services for an offshore wind project. The extension commenced in October 2026 as a direct continuation of the existing program and added approximately $2.5m to the contracted revenue backlog.
Finally, the company announced that the semisub Valaris MS-1 and jackup Valaris 111 were sold for recycling in September 2026.
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