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Bermuda-incorporated offshore drilling contractor Valaris has secured new rig assignments and contract extensions in Brazil, Brunei, Indonesia, and the UK and Dutch sectors of the North Sea.
Valaris has won new contracts and extensions, with an associated backlog of approximately $560 million, after issuing its previous fleet status report on February 17, 2026. The contract backlog excludes lump sum payments such as mobilization fees and capital reimbursements. The rig owner claims that its contract backlog increased to around $4.9 billion from about $4.7 billion as of February 17, 2026.
Among its latest floater contract awards, the company revealed a 1,064-day extension for the Valaris DS-4 drillship with Petrobras offshore Brazil. This extension is expected to start in November 2027 in direct continuation of the existing program and will add approximately $447 million to the contract backlog. The day rate for the remainder of the existing contract has been adjusted, reducing contract backlog from April 1, 2026, to November 2027 by around $21 million.
Anton Dibowitz, Valaris’ President and Chief Executive Officer, commented: “We delivered safe and reliable operations for our customers, achieving revenue efficiency of 98% in the first quarter. We expect a meaningful improvement in our financial results through 2026, supported by strong project delivery and operational execution, with the DS-12 having successfully returned to operations ahead of schedule and three additional drillships from our active fleet on track to restart later this year.
“We continue to execute our commercial strategy, adding over $500 million of new contract backlog since reporting our fourth quarter results, including a multi-year extension for Valaris DS-4 offshore Brazil that secures continuous work for the rig into 2030. As a result, total backlog now stands at approximately $4.9 billion, our highest level in nearly a decade, further supporting future earnings and cash flow.”
Valaris’ jack-up contract awards entail a two-year contract extension for the Valaris 115 jack-up rig with Brunei Shell Petroleum, which is expected to begin in April 2027 in direct continuation of the existing program, adding around $78 million to contracted revenue backlog.
The company’s one-well contract for the Valaris 106 jack-up with Medco Energi offshore Indonesia commenced in April 2026 and has a minimum duration of 45 days. The estimated total contract value is approximately $5.4 million.
The firm’s 123-day contract extension for the Valaris 122 jack-up with Adura in the UK North Sea to provide accommodation support services began in May 2026, in direct continuation of the existing program, bringing approximately $14 million to contracted revenue backlog.
The rig owner’s two-well contract for the Valaris 122 rig with Ineos in the UK North Sea is anticipated to kick off in September 2026 and has an estimated duration of 162 days. With the operating day rate of $115,000, the contract also includes options with an estimated total duration of 825 days for work in the UK and Danish North Sea.
Valaris’ 123-day contract extension for the Valaris 123 jack-up with TAQA in the Dutch North Sea for accommodation support services commenced in May 2026 in direct continuation of the existing program. The day rate is $80,000.
The company’s 74-day contract extension for the Valaris 248 jack-up rig with GE Vernova in the UK North Sea to provide accommodation support services for an offshore wind project begun in April 2026, in direct continuation of the existing program, and will add over $5 million to contracted revenue backlog.
All Valaris and ARO Drilling, a 50/50 joint venture between the rig owner and Aramco in Saudi Arabia, units operating in the Middle East remain under contract. The completion of planned shipyard projects for the Valaris 116 and Valaris 250 rigs got delayed, with bareboat charters for the rigs now expected to resume in the third quarter of 2026.
Dibowitz continued: “We remain positive on the outlook for offshore drilling, supported by improving market fundamentals. While the ongoing conflicts in the Middle East have created near-term uncertainty, they reinforce the strategic importance of energy security and the need for sustained upstream investment to help ensure reliable and affordable energy supply.”
The operations for Valaris 110 have been suspended since early March 2026, and the rig remains contracted to NOC offshore Qatar. On the other hand, the Valaris DPS-1 semi-submersible was sold for recycling in April 2026. Valaris is pursuing an all-stock transaction with Transocean that is expected to deliver meaningful value to its shareholders.
Dibowitz concluded: “During the quarter, we were pleased to announce an all-stock transaction with Transocean that will benefit our shareholders, customers and employees.
“The transaction is expected to deliver meaningful value to Valaris shareholders through anticipated synergies and the opportunity to participate in the future upside potential of a combined company that is capable of operating any rig at any water depth in any offshore environment around the world.”
The firm also entered into a strategic collaboration agreement with Petronas and Halliburton to support the development of Suriname’s offshore assets.
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