Offshore drilling giant Valaris has announced a significant expansion of its contract backlog, adding over $1 billion in new agreements and extensions.
Valaris, a leading provider of offshore drilling services, has reported a robust period of new contract awards and extensions, adding more than $1.0 billion to its contract backlog since its last fleet status report on April 30, 2025. This surge has elevated the company's total contract backlog to an impressive $4.7 billion, up from $4.2 billion. The new contracts underscore the continued recovery and demand within the offshore oil and gas drilling sector.
A major highlight in the floater segment is a combined approximately $760 million addition to the contracted revenue backlog from Anadarko Petroleum Corporation, a wholly-owned subsidiary of Occidental. This includes a 940-day contract extension for the drillship VALARIS DS-16, set to commence in June 2026, and a new 914-day contract for the drillship VALARIS DS-18, expected to begin in mid-fourth quarter 2026. Both engagements are for operations in the critical Gulf of America region.
Further strengthening its floater portfolio, Valaris secured a five-well contract offshore West Africa for the drillship VALARIS DS-15. This contract, anticipated to start in the third quarter of 2026, is valued at approximately $135 million, based on an estimated duration of 250 days. This figure includes upfront payments for rig upgrades and mobilization, with potential for additional services and priced options for up to five more wells, estimated to add another 80 to 100 days of work.
The jackup fleet also saw considerable activity. The VALARIS 110 secured a four-year contract extension offshore Qatar, commencing in October 2025 in direct continuation of its existing agreement. This extension alone contributes approximately $117 million to the contracted revenue backlog, emphasizing the stability of long-term engagements in key Middle Eastern markets.
In the UK North Sea, the jackup VALARIS Norway received a 150-day contract extension with Ithaca Energy, starting in February 2026, adding approximately $18 million to the backlog. Additionally, the VALARIS 122 secured a 31-day contract extension with Shell in the same region, commencing in December 2025. This extension, valued at over $3.5 million, is specifically for accommodation support and includes two 28-day priced options, highlighting the versatility of Valaris's jackup assets.
Amidst these gains, Valaris also provided updates on other fleet movements. A contract suspension notice was received from Harbour Energy for the jackup VALARIS 120, effective upon completion of the current well, estimated around September 2025. Despite the suspension, contract backlog amounts for this rig following the effective date are included. In a strategic move, VALARIS 120 will temporarily substitute for VALARIS 248 from September 2025 to April 2026 for an Eni contract in the East Irish Sea, allowing VALARIS 248 to complete another customer's program and undergo a special periodic survey.
Furthermore, a previously disclosed contract for VALARIS 248 with Anasuria Hibiscus UK Limited in the UK North Sea has been terminated by mutual agreement. In a significant asset divestment, Valaris has also agreed to sell the jackup VALARIS 247 for cash proceeds of approximately $108 million. This sale is expected to finalize in the second half of 2025, subject to customary closing conditions, optimizing the company's fleet composition.
