Billion-dollar rig jobs raise Valaris’ backlog to $4.7B

Bermuda-incorporated offshore drilling contractor Valaris has won a new batch of rig assignments and extensions, enabling three drillships and three jack-ups to secure work in different geographies. The company also confirmed a rig suspension, a contract termination for another unit, and the sale of a rig from its jack-up fleet.

Based on the rig owner’s latest fleet status report, new contracts and extensions have an associated contract backlog of over $1 billion, excluding lump sum payments such as mobilization fees and capital reimbursements. Thanks to this, the firm’s contract backlog increased to approximately $4.7 billion from around $4.2 billion as of April 30, 2025.

Within the floater contract awards, the company mentioned a 940-day contract extension for the Valaris DS-16 drillship, starting in June 2026, and a new 914-day contract for the Valaris DS-18 drillship, which is expected to begin in mid-fourth quarter 2026.

These have been secured with Anadarko Petroleum Corporation, a wholly-owned subsidiary of Occidental, in the Gulf of America, formerly the U.S. Gulf of Mexico. The combined addition to contracted revenue backlog is about $760 million.

Valaris also highlighted a five-well contract offshore West Africa for the Valaris DS-15 drillship, which is slated to commence in the third quarter of 2026. The total contract value, based on an estimated duration of 250 days, is approximately $135 million, including upfront payments for rig upgrades and mobilization, but excluding the provision of additional services. This contract comes with priced options for up to five wells with an estimated total duration of 80 to 100 days.

While revealing its recent jack-up contract awards, the rig owner emphasized a four-year contract extension for the Valaris 110 jack-up offshore Qatar, which is scheduled to start in October 2025 in direct continuation of the existing contract. The multi-year extension’s contracted revenue backlog is around $117 million.

The offshore drilling player also announced a 150-day contract extension for the Valaris Norway jack-up with Ithaca Energy in the UK North Sea, which is slated to begin in February 2026 in direct continuation of the existing contract. The contracted revenue backlog for the 150-day extension is approximately $18 million.

In addition, Valaris obtained a 31-day contract extension for the Valaris 122 jack-up with Shell in the UK North Sea, which is expected to commence in December 2025 in direct continuation of the existing contract. With a contracted revenue backlog of over $3.5 million, the contract extension is for the provision of accommodation support and includes two 28-day priced options.

Valaris also made arrangements to sell the Valaris 247 jack-up for cash proceeds of approximately $108 million. The rig sale is expected to close in the second half of 2025, subject to customary closing conditions.

Aside from new deals and extensions, the firm underlined a contract suspension notice, which was received from Harbour Energy for the Valaris 120 jack-up, effective on completion of the oil and gas operator’s current well, estimated to be in September 2025.

Valaris also revealed an amendment to a previously disclosed contract for the Valaris 248 jack-up with Eni in the East Irish Sea (UK). As a result, the Valaris 120 jack-up will act as the substitute for the Valaris 248 rig from September 2025 to April 2026, while the latter completes another customer’s program and a special periodic survey (SPS).

The rig owner’s previously disclosed contract for this jack-up with Anasuria Hibiscus UK in the UK North Sea has been terminated by mutual agreement.

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