Valaris reported approximately $220 million of new contract and extension backlog, including a two-well Suriname drillship contract, jackup work in Australia and the North Sea, and a revised East Irish Sea program.
Published by Allstream Insiders
Allstream Insiders Summary
Valaris Limited has announced new contract awards and extensions with associated contract backlog of approximately $220 million since its prior fleet-status report on August 5, 2026. The reported amount excludes lump-sum payments such as mobilization fees and capital reimbursements.
The October 7 update includes a two-well exploration contract for drillship VALARIS DS-18 offshore Suriname; new jackup work for VALARIS 107 offshore Australia; a North Sea plug-and-abandonment fleet award; an extension for VALARIS 122 in the Danish North Sea; and revised work assignments for VALARIS 121 and VALARIS 72 in the East Irish Sea.
Valaris also reported an accommodation-support extension for VALARIS 248 on a UK offshore-wind project, along with the September sale of semisubmersible VALARIS MS-1 and jackup VALARIS 111 for recycling. Contract commencement dates, options and expected durations remain company-reported expectations rather than completed operating results.
Valaris contract awards and extensions at a glance
| Rig or fleet award | Company-reported scope | Timing and backlog detail |
|---|---|---|
| VALARIS DS-18 | Two-well exploration contract with PETRONAS Suriname Exploration & Production B.V. | Expected fourth-quarter 2026 start; up to seven months. Backlog excludes separately billable additional services and mobilization/demobilization compensation. |
| VALARIS 107 | New offshore-Australia contract | Expected after current commitments; estimated 300-day duration and approximately $50 million of backlog, excluding mobilization and demobilization. Includes priced options. |
| North Sea fleet award | Multi-well plug-and-abandonment contract in the Southern North Sea, assignable to a suitable and available Valaris North Sea rig | Commencement window through December 2030; estimated 341 days and $41.5 million of contracted backlog, subject to annual cost escalation. Includes a 19-day one-well option. |
| VALARIS 122 | INEOS extension for the Danish North Sea | Expected February 2027 start in direct continuation of the existing program; estimated 126 days at a $115,000 operating day rate. Additional UK and Danish North Sea options total an estimated 699 days. |
| VALARIS 121 and 72 | Revised Eni East Irish Sea program assignment | VALARIS 121 is expected to perform approximately 8.5 months beginning November 2026; VALARIS 72 is now expected to complete its program in March 2027. Amendment adds approximately $17 million of backlog. |
| VALARIS 248 | Seatrium accommodation-support extension for a UK offshore-wind project | 31-day extension commenced October 2026 and added approximately $2.5 million of contracted backlog. |
DS-18 moves from letter of award to Suriname exploration contract
Valaris said VALARIS DS-18 has been awarded a two-well exploration contract with PETRONAS Suriname Exploration & Production B.V. The company said the award follows its previously announced letter of award and expects the program to begin in the fourth quarter of 2026, with a duration of up to seven months.
The company did not disclose the field, water depth, contract value, day rate, drilling locations, support-vessel scope, subsea scope or individual service providers for the Suriname program. The expected start and duration should be read as Valaris’s stated plan, not confirmation that drilling has begun.
Australia and North Sea jackup work adds to the reported backlog
The VALARIS 107 contract is expected to follow its current commitments offshore Australia and has an estimated 300-day duration. Valaris reported approximately $50 million in associated backlog, excluding mobilization and demobilization compensation, and said the agreement includes priced options. It did not identify the customer, field, well count, day rate, option duration or operating start date.
In the Southern North Sea, Valaris announced a multi-well plug-and-abandonment fleet award that may be performed by any suitable and available rig within its North Sea fleet. The company reported an estimated 341-day duration and $41.5 million of contracted backlog, subject to an annual cost-escalation mechanism. The agreement’s commencement window extends through December 2030, and it includes a one-well option estimated at 19 days.
Danish and East Irish Sea schedules are revised
Valaris said the extension for VALARIS 122 with INEOS is expected to begin in February 2027 in direct continuation of the existing Danish North Sea program. The base extension has an estimated 126-day duration at a $115,000 operating day rate; the company also identified options totaling an estimated 699 days for UK and Danish North Sea work. Those options are not part of the confirmed base extension.
Separately, Valaris amended its previously announced East Irish Sea contract with Eni. The company said VALARIS 121 is expected to perform approximately eight and a half months of the program, beginning in November 2026 after its existing work for another operator. Under the revision, VALARIS 72 is expected to complete its program in March 2027 rather than September 2027. Valaris said the amendment increases contract backlog by approximately $17 million.
Fleet changes include wind accommodation support and two recycling sales
The company also reported a 31-day VALARIS 248 extension with Seatrium in the UK North Sea to provide accommodation-support services for an offshore-wind project. The extension began in October 2026 in direct continuation of the existing program and added approximately $2.5 million of backlog.
Valaris said semisubmersible VALARIS MS-1 and jackup VALARIS 111 were sold for recycling in September 2026. The release did not disclose the sales consideration, buyers, recycling locations or any decommissioning scope tied to those transactions.
Allstream perspective: confirmed rig work is distinct from options and fleet planning
Allstream perspective: The update gives the clearest confirmation on the DS-18 Suriname exploration contract, VALARIS 107 Australia contract, Southern North Sea plug-and-abandonment fleet award, the VALARIS 122 extension and the revised East Irish Sea assignment. Together with the other disclosed extensions, those awards and amendments support Valaris’s stated approximately $220 million of added backlog.
However, several execution details remain undisclosed, including customers and operating locations for some awards, well counts, specific fleet-rig selection for the plug-and-abandonment program, day rates, suppliers and procurement packages. Priced options and optional days should not be treated as confirmed utilization, and planned start dates remain subject to the normal execution conditions of offshore work.
