Valaris Optimizes Fleet and Secures New Contracts

Offshore drilling contractor Valaris, headquartered in Bermuda, has implemented strategic measures to enhance its rig fleet efficiency. The company has decided to retire three semi-submersible units from drilling operations and divest a stacked jack-up rig. Concurrently, Valaris has secured new drilling contracts across various regions.

Rig Fleet Rationalization

Valaris has announced the retirement of three semi-submersible rigs from its fleet. This includes the Valaris DPS-5, Valaris DPS-3, and Valaris DPS-6, which have been idle or stacked for an extended period. Additionally, the company has sold the Valaris 75 jack-up rig, which has been stacked in the U.S. Gulf for five years. These actions aim to optimize the fleet and reduce costs associated with idle rigs.

Anton Dibowitz, President and CEO of Valaris, emphasized the company’s commitment to prudently managing its fleet by divesting assets that do not align with long-term contract opportunities. The fleet rationalization is part of Valaris’ strategy to focus on high-specification assets and enhance cash flow.

New Contracts and Extensions

Valaris has secured several new drilling contracts and extensions, resulting in a backlog of approximately $120 million. The company’s contract backlog currently stands at around $3.6 billion.

Notable contract wins include a 600-day extension with TotalEnergies in the UK North Sea for the Valaris Stavanger jack-up rig, valued at over $75 million. Valaris has also landed a 100-day contract with BP offshore Trinidad for the Valaris 249 jack-up rig, worth approximately $16.8 million.

Furthermore, Valaris has secured a one-well contract with Jadestone Energy offshore Australia for the Valaris 247 jack-up unit and a two-well-priced option with BP in Indonesia for the Valaris 106 jack-up rig.

Environmental Initiatives

In addition to fleet optimization and contract acquisitions, Valaris is actively working to reduce its greenhouse gas emissions footprint. The company’s decarbonization strategy includes initiatives such as electrification and biofuel blends to minimize environmental impact from rig activities.

Overall, Valaris’ recent actions reflect its commitment to operational efficiency, fleet modernization, and environmental sustainability in the offshore drilling industry.