Valaris has picked up new contracts and contract extensions for its rig fleet amounting to over $160 million in total.
The company’s overall backlog was $4.6 billion as of August 5, according to the company’s latest fleet status report.
The awards come as offshore drilling contractors continue to benefit from strong demand for high-specification rigs, particularly in the deepwater sector, where operators are advancing exploration and development programs despite ongoing cost and supply chain pressures.
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The industry is moving toward a leaner, more efficient rig fleet, and more consolidation is expected.
US Gulf, North Sea contracts support backlog growth
In the floater sector, the drillship VALARIS DS-18 is due to start a two-well exploration program for with Anadarko Petroleum in the US Gulf of Mexico during the fourth quarter, and that work is expected to last up to seven months.
All the other awards are jackup contracts:
A 101-day contract extension for VALARIS 248 with GE Vernova in the UK North Sea, which started in June, to provide accommodation support for an offshore wind project.
A 41-well P&A contract in the UK North Sea for VALARIS 248, set to begin in mid-2027 and with a likely duration of 1,080 days. The contract also includes two unpriced one-year options.
Eni’s previously disclosed contract for VALARIS 248 in the East Irish Sea has been switched to VALARIS 120.
A one-well contract for VALARIS 123 in the Baltic Sea offshore Poland, awarded by Central European Petroleum, at $135,000/d. Work is due to start in September and continue for about 110 days, with an option for a second well (30 days).
Middle East rig activity returns to normal
In the Middle East, all operating Valaris/ARO rigs remain under contract. VALARIS 250 completed a shipyard project and resumed its bareboat charter with ARO in mid-July, while VALARIS 116 should recommence its bareboat charter with ARO later in the current quarter.
Offshore Qatar, VALARIS 110 has been back at work for NOC since late May, having been taken offline in early March 2026 due to the conflicts in the Middle East.
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The Middle East offshore sector is undergoing a dynamic transformation, driven by innovation, strategic reinvestment and evolving market demands.
Over the past two months, Valaris concluded the sales of the VALARIS 104 and 109 jackups, both of which had been stacked for about six years, for $74 million.
VALARIS 104 was sold for non-drilling purposes.
The transactions continue a broader effort by offshore drillers to monetize older, inactive assets while focusing capital on higher-specification rigs with stronger market demand.
A one-well contract for the VALARIS 106 jackup from Medco Energi offshore Indonesia has been terminated by mutual agreement.
“We remain positive on the outlook for offshore drilling. The pipeline of deepwater contract opportunities remains robust, and we expect to see further awards across the industry, supported by favorable market fundamentals and strong customer demand for high-specification assets. We are also excited about the pending business combination with Transocean, which is on track to close in the fourth quarter of 2026. The combination is expected to deliver meaningful value to our shareholders through anticipated synergies and the enhanced capabilities of the combined company.”
—President and CEO Anton Dibowitz said in the company’s second-quarter 2026 results report
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