Valaris parts ways with 27-year-old jack-up rig for $108 million

Bermuda-headquartered offshore drilling contractor Valaris is divesting a jack-up from its rig fleet to boost its financial flexibility.

The rig owner made up its mind to sell the Valaris 247 jack-up to BW Energy for cash proceeds of approximately $108 million. While the sale is subject to customary closing conditions, it is anticipated to close in the second half of 2025.

The rig divestment deal comes with a restriction, which means that BW Energy will not be able to use this jack-up outside its owned or affiliated properties for the rig’s expected remaining useful life.

Anton Dibowitz, Valaris’ President and Chief Executive Officer, commented: “We are pleased to announce this highly accretive, opportunistic transaction to sell Valaris 247, a 27-year-old jackup currently working offshore Australia.

“Upon closing, the sale proceeds will provide us with additional financial flexibility, including the return of capital to shareholders.”

With a maximum drilling depth of 35,000 feet (10,668 meters), the 1998-built Valaris 247 jack-up rig can operate in water depths of 481 feet (147 meters) and accommodate 140 people.

This sale comes shortly after Valaris secured more work for one of its drillships in West Africa.