Offshore drilling contractor Valaris has secured a batch of new contracts and extensions across its rig fleet, lifting its total backlog to $4.6bn, according to Splash247. The Houston-based company's new deals and extensions add around $160m to contracted revenue backlog, excluding lump sum payments such as mobilisation fees and capital reimbursements.
DS-18 drillship: new award and Occidental postponement
Valaris' 2015-built Valaris DS-18 drillship received a letter of award from an unnamed client for a two-well exploration program, Splash247 reported. The program is expected to commence in the fourth quarter of 2026 and last up to seven months, with the location undisclosed. As a result, the previously awarded contract for the drillship with Occidental in the Gulf of Mexico has been postponed until the end of the newly awarded contract. The 914-day deal with Occidental was initially scheduled to start mid-fourth quarter of this year, but will now start in May 2027 and end in December 2029.
Valaris 248 jackup: wind accommodation and plug & abandonment
The Valaris 248 jackup was the biggest winner, according to Splash247. A smaller deal is a 101-day extension with GE Vernova in the UK North Sea for accommodation support services for an offshore wind project. The extension has already started in direct continuation of the existing program and added approximately $7.5m to the contracted revenue backlog. The second deal is for 1,080 days and involves a 41-well plug and abandonment contract in the UK North Sea, expected to commence mid-2027. The firm term is expected to add approximately $140m to contracted revenue backlog, subject to an annual cost escalation mechanism effective from the commencement date, and includes two unpriced one-year options. Due to the new contract, the Valaris 248's existing contract in the East Irish Sea with Eni's UK subsidiary, which was supposed to last until January 2028, was assigned to the Valaris 120.
Valaris 123 and other fleet movements
The Valaris 123 jackup won a one-well contract with Central European Petroleum offshore Poland in the Baltic Sea. The contract is expected to commence in September 2026 for an estimated duration of 110 days, with a priced option for a second well of approximately 30 days. The operating dayrate is $135,000. Elsewhere, the Valaris 250 jackup is completing its planned shipyard project and restarted its bareboat charter with ARO in mid-July, while the Valaris 116 is expected to recommence its bareboat charter with ARO in the third quarter of 2026. In the Middle East, the Valaris 110 jackup resumed operations with NOC offshore Qatar after operations had been suspended from early March until late May 2026 due to conflicts in the Middle East.
Rig sales and contract termination
Valaris also sold two jackups, the Valaris 104 and Valaris 109, for total cash proceeds of $74m. Both rigs had been stacked for approximately six years, and according to the driller, the Valaris 104 was sold for non-drilling use. Finally, a previously disclosed one-well contract for the Valaris 106 jackup with Medco Energi offshore Indonesia was terminated by mutual agreement.
Contract backlog additions at a glance
| Rig | Client | Scope | Timing / Duration | Backlog addition |
|---|---|---|---|---|
| Valaris DS-18 | Unnamed client | Two-well exploration program | Q4 2026, up to 7 months | Part of ~$160m total |
| Valaris DS-18 | Occidental | Drilling contract, Gulf of Mexico | May 2027 – December 2029 (914 days) | Not specified |
| Valaris 248 | GE Vernova | Accommodation support, offshore wind, UK North Sea | 101-day extension, already started | ~$7.5m |
| Valaris 248 | Unnamed | 41-well plug & abandonment, UK North Sea | 1,080 days, mid-2027 | ~$140m |
| Valaris 123 | Central European Petroleum | One-well contract, Baltic Sea offshore Poland | September 2026, ~110 days + 30-day option | Dayrate $135,000 |
| Valaris 110 | NOC | Operations offshore Qatar | Resumed after suspension March–May 2026 | Not specified |
| Valaris 104 & 109 | Sold | Two stacked jackups | ~6 years stacked | $74m cash proceeds |
The total contract backlog for these new deals and extensions is around $160m.
The fleet adjustments reported by Splash247 also include the transfer of the East Irish Sea work from the Valaris 248 to the Valaris 120, the restart of the Valaris 110 offshore Qatar, and the bareboat charter restarts for the Valaris 250 and 116 with ARO. The $4.6bn backlog provides revenue visibility anchored by the Occidental drillship deal running through December 2029, while the $135,000 dayrate for the Valaris 123 contract offers a concrete reference point for offshore drilling costs in the Baltic Sea.
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