The offshore drilling company Valaris has achieved significant advancements with the acquisition of $600 million in new contracts and extensions. This growth is primarily due to a $290 million contract with BP in the Gulf of Mexico and a series of new drilling awards across its global fleet, increasing the company's contract backlog to approximately $4.8 billion.
New Drilling Contracts
Since announcing these contracts in early October, Valaris has secured two new drilling contracts. First, an exploratory two-well contract with Petronas in Suriname for the Valaris DS-18 drilling rig. Second, a contract extension for one well with BP off the coast of Egypt for the Valaris DS-12 rig, expected to commence in late 2027 or early 2028 and last approximately 60 days. This contract extension will add nearly $25 million to the contract revenue backlog.
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New Extensions and Future Projects
In the jack-up rig segment, a one-well contract has been awarded to Valaris 107 with Emperor Energy off the coast of Australia. This contract is expected to start in the second quarter of 2027 and last at least 30 days. The daily operating rate for this contract is $165,000.
Valaris 106 has also received a one-well extension with BP in Indonesia, expected to commence in the fourth quarter of 2028 and last 90 days. This extension will add approximately $10 million to the contract revenue backlog.
Valaris Norway has also secured a 200-day extension with Ithaca Energy in the North Sea off the UK, set to begin in the second quarter of 2027 and add about $27 million to the contract revenue backlog.
Additionally, Valaris 122 has received an extension for a project in the North Sea off the UK, expected to start in July 2027 and last 158 days. The daily operating rate for this contract is $125,000.
The company has also secured a three-year service contract with BP to support drilling operations at the Mad Dog and Thunder Horse platforms in the Gulf of Mexico, valued at approximately $290 million, expected to commence in January 2027.
Finally, since reporting its fleet status in August, Valaris has secured contracts worth $600 million, which includes several contracts reported in October as well.
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