New Contracts Boost Valaris’ Backlog to $4.2 Billion

New York-listed offshore driller Valaris has secured new deals for its rigs, significantly increasing the company’s backlog to approximately $4.2 billion. These recent contract awards demonstrate the continued demand for Valaris’ services in the offshore drilling market.

ExxonMobil Exercises Option for Valaris DS-9 Drillship

US supermajor ExxonMobil has exercised a six-month price option for the 2015-built Valaris DS-9 drillship. The option will commence in January 2026, seamlessly extending the existing firm program. The Valaris DS-9 has been under hire by ExxonMobil since 2022 and is currently operating off Cyprus. The drillship is expected to return to its original working destination off Angola in the third quarter of 2025.

New Contracts for Jackups

The 2009-built jackup Valaris 117 has secured a 545-day contract with an undisclosed operator offshore Trinidad. The contract is scheduled to start in the third quarter of 2026, with a day rate in line with market rates in the region. Additionally, the Valaris 248 jackup has landed a 730-day contract with an undisclosed client in the North Sea, set to commence in November 2025.

Extensions for ARO Drilling Jackups

Five jackups leased to ARO Drilling, including Valaris 116, 140, 141, 146, and 250, have received five-year bareboat charter agreement extensions for drilling operations off Saudi Arabia. These extensions will ensure continued operations in the region, with the Valaris 116 and 250 undergoing periodic surveys and equipment recertifications during specified out-of-service periods.

Rig Retirements and Scrapping

Valaris has announced the retirement and sale of the semisubs Valaris DPS-3, DPS-5, and DPS-6 for recycling, generating approximately $10 million in sales proceeds. These rigs will either be repurposed for non-drilling uses or scrapped, reflecting the company’s strategic decisions to optimize its fleet.

Backlog Growth and Financial Outlook

With the addition of these new contracts and extensions, Valaris’ contract backlog has surged to around $4.2 billion, up from $3.6 billion in February 2025. This robust backlog underscores the company’s strong position in the offshore drilling market and provides visibility into future revenue streams.