Offshore drilling contractor Valaris Limited has announced a definitive agreement to sell its jackup rig, VALARIS 247, to BW Energy for approximately $108 million in cash. The transaction, subject to customary closing conditions, is anticipated to finalize in the latter half of 2025.

The VALARIS 247, a 27-year-old jackup currently operating offshore Australia, represents a non-core asset for Valaris as the company continues to optimize its fleet. A notable aspect of the sales agreement includes a restriction preventing BW Energy from deploying the rig outside of its own or affiliated properties for the remainder of the rig's expected operational lifespan. This clause suggests BW Energy intends to utilize the VALARIS 247 primarily for its own drilling programs.

Anton Dibowitz, President and Chief Executive Officer of Valaris, expressed his satisfaction with the agreement, stating, "We are pleased to announce this highly accretive, opportunistic transaction to sell VALARIS 247. Upon closing, the sale proceeds will provide us with additional financial flexibility, including the return of capital to shareholders."

This strategic divestiture aligns with Valaris' ongoing efforts to streamline its asset portfolio and enhance its financial position. The substantial cash infusion of $108 million will bolster the company's balance sheet, providing optionality for debt reduction, strategic investments, and the potential return of capital to its shareholders, as highlighted by Mr. Dibowitz.

BW Energy, an oil and gas exploration and production company with a focus on offshore fields, will acquire a seasoned jackup rig that can support its operational needs. This acquisition could provide BW Energy with greater control over its drilling schedules and costs in the long term.

The sale of VALARIS 247 marks another step in the dynamic landscape of the offshore drilling industry, where companies are continually evaluating their asset holdings and adapting to market conditions. For Valaris, this transaction underscores a commitment to optimizing its fleet towards more modern and higher-specification assets, while simultaneously unlocking value from its existing inventory.

The successful closure of this sale in the second half of 2025 will be a significant development for both Valaris and BW Energy, allowing each company to further execute their respective strategic objectives in the evolving energy sector. Investors and industry analysts will be closely watching the progress of this transaction and its subsequent impact on the financial performance and operational strategies of both entities. The decision by Valaris to potentially return capital to shareholders will likely be viewed positively by the investment community, signaling confidence in the company's future prospects and financial strength.