Valaris Secures $220M Backlog Across North Sea, Australia and Suriname

Offshore drilling contractor Valaris has added approximately $220 million to its contract backlog through new awards and extensions in the North Sea, Australia, and Suriname, while divesting two aging semi-submersible rigs for recycling.

By The Shipping Chronicle · AI-assisted reporting and explanations

Offshore drilling contractor Valaris announced that it has secured new contracts and extensions worth approximately $220 million. This figure represents the contract backlog accumulated subsequent to the company's previous fleet status report on August 5, 2026. The total excludes lump-sum payments such as mobilization fees, capital reimbursements, and compensation for additional services billed separately.

In the floater segment, Valaris awarded a new two-well exploration contract to its Valaris DS-18 drillship. The agreement is with Petronas Suriname Exploration & Production, a subsidiary of Malaysia’s Petronas. Following a previously announced letter of award, the deal is expected to begin in the fourth quarter of 2026 for a duration of up to seven months. The Valaris DS-18, formerly known as the Rowan Relentless, was previously noted as having found more work in this region.

Valaris’ jack-up segment also received significant bolstering from new awards and amendments. Offshore Australia, Valaris won a contract for the Valaris 107 jack-up rig. Expected to commence following current commitments, the job has an estimated duration of 300 days. The associated contract backlog is approximately $50 million, which includes priced options but excludes mobilization and demobilization compensation.

In the Southern North Sea, the company secured a multi-well plug and abandonment (P&A) contract. P&A operations involve the permanent sealing of out-of-use wells. This assignment may be performed by any suitable and available rig within Valaris’ North Sea fleet. With an estimated duration of 341 days and a commencement window up to December 2030, the contracted revenue backlog stands at $41.5 million. This figure is subject to an annual cost escalation mechanism effective from the execution date and includes a one-well option with an estimated duration of 19 days.

Operational schedules for existing assignments have also been adjusted. A project originally assigned to the Valaris 72 rig with Eni in the East Irish Sea (UK) was amended. Approximately eight and a half months of the program will now be undertaken by the Valaris 121 rig, starting in November 2026 in direct continuation of its existing program. Consequently, the Valaris 72 is expected to complete its program in March 2027, advancing from the previous September 2027 timeline. This amendment increases the contract backlog by approximately $17 million.

Further north, Valaris secured a contract extension for the Valaris 122 rig with INEOS for a project in the Danish North Sea. Scheduled to begin in February 2027 in direct continuation of the existing program, the 126-day extension carries an operating day rate of $115,000. It comes with additional options totaling an estimated 699 days for work in the UK and Danish North Sea.

Additional short-term activity includes a 31-day contract extension for the Valaris 248 rig with Seatrium in the UK North Sea. Beginning in October 2026, this extension provides accommodation support services for an offshore wind project and added about $2.5 million to the contracted revenue backlog.

While expanding its utilized fleet, Valaris also streamlined older assets. In September 2026, the company sold the Valaris MS-1 and Valaris 111 semi-submersible rigs for recycling.

## Executive Summary Valaris has added $220 million to its backlog through global contract awards and extensions, including key projects in Suriname, Australia, and the North Sea, while simultaneously selling two older rigs for recycling to optimize fleet composition.

## Jack-up Rig Developments The jack-up fleet saw strong activity with the Valaris 107 securing a 300-day job in Australia and the Valaris 122 extending operations in the Danish North Sea. Additionally, a flexible multi-well P&A contract in the Southern North Sea allows deployment across the regional fleet, with potential start dates up to 2030.

## Floater Segment Updates The Valaris DS-18 drillship secured a new seven-month exploration contract with Petronas Suriname, marking renewed activity in South American waters. This follows a previously announced letter of award and sets operations to commence in late 2026.

## Asset Disposal and Fleet Optimization Valaris continued to reduce its end-of-life inventory by selling the Valaris MS-1 and Valaris 111 semi-submersibles. These divestments align with efforts to maintain a competitive fleet focused on actively utilized modern units.

## Market Outlook The accumulation of these contracts contributes to a broader operational narrative for Valaris. With recent additions bringing specific segments into sharp focus, the company demonstrates sustained demand across varied geographical markets. From long-term decommissioning in the North Sea to exploration in Suriname, the portfolio reflects diversified revenue streams supporting current fleet activities.