New York-listed offshore driller Valaris has been awarded new contracts and contract extensions, with an associated contract backlog of nearly $900m.
In the floater sector, the 2013-built Valaris DS-7 drillship won a five-well contract extension with Azule Energy offshore Angola. The contract extension is expected to commence in October 2026, in direct continuation of the existing program, and will last 325 days, adding approximately $125m to the contracted revenue backlog. The contract also includes a five-well unpriced option with an estimated duration of 300 to 350 days.
The 2015-built Valaris DS-9 drillship was awarded a two-year contract extension with Esso Exploration Angola, an affiliate of ExxonMobil. The contract extension is expected to commence in July 2026 in direct continuation of the existing program. The operating day rate is in line with recent market rates in the region. The contract also includes two six-month options. The rig has been under hire by ExxonMobil since 2022.
The jackup fleet won a batch of contracts. The first is an eight-well contract for the 2005-built Valaris 106 jackup with BP in Indonesia. The contract is expected to commence in the third quarter of 2026 and is estimated to last two years. The estimated total contract value is approximately $74m. The contract also includes four option wells.
The 2009-built jackup Valaris 117 won a 75-day contract extension with Eni in Mexico. The contract extension commenced in January 2026 in direct continuation of the existing program.
The same rig won a 185-day contract extension with an undisclosed operator offshore Trinidad. The extension will commence in the first quarter of 2028 in direct continuation of the existing program.
Esso Australia exercised a priced option for the 2006-built Valaris 107 jackup. The option period will commence directly after the existing program. The rig is now expected to be under contract with the customer through September 2026.
This jackup also won a three-well contract with GB Energy off the coast of Australia. The contract is expected to commence in October 2026 and is estimated to last 150 days. The estimated total contract value is approximately $27m.
The 2019-built jackup Valaris 123 won a 105-day contract extension with TAQA in the Dutch North Sea to provide accommodation support services. The extension has already started. The day rate is $80,000. After the extension runs out, TAQA will have four one-month options.
The 2014-built Valaris 122 jackup was awarded a 64-day contract extension with Adura in the UK North Sea. The contract extension will commence in February 2026 in direct continuation of the existing contract. The contracted revenue backlog for the extension is over $7m. The contract extension is for accommodation support.
GE Vernova awarded a 30-day contract extension to the Valaris 248 jackup in the UK North Sea for accommodation support services on an offshore wind project. The contract extension will commence in March, as a direct continuation of the existing contract, and will add over $2m to the contracted revenue backlog. The contract includes an additional five priced options with a total duration of 74 days.
Valaris was also awarded a 12-well plug and abandonment contract with Spirit Energy in the East Irish Sea off the UK. The contract has a commencement window through December 2030 and an estimated duration of 294 days. The contracted revenue backlog is estimated at $35m and is subject to an annual cost-escalation mechanism, effective as of the contract execution date.
The contract also includes three options with a total estimated duration of 426 days. 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 offshore driller also stated in its fleet status report that the Valaris DPS-1 semisub is classified as held for sale with the intent to recycle, while the Valaris 102 and 145 jackups were sold for recycling in December 2025.
The contract backlog from the new contracts, which also includes the previously reported $300m deal for the Valaris DS-8, increased to approximately $4.7bn from approximately $4.5bn as of October 23, 2025.
Last week, Switzerland-based Transocean signed a definitive agreement to acquire Valaris in an all-stock transaction valued at about $5.8bn. On a fully diluted basis, Transocean shareholders will own roughly 53% of the combined group, with Valaris investors owning the 47%.
