Semisubmersibles VALARIS DPS-3, DPS-5 and DPS-6 to be Retired from Global Drilling Supply Jackup VALARIS 75 Sold for $24 Million
Multi-Year Contract for Jackup VALARIS Stavanger in the North Sea

Valaris Limited announced several fleet rationalization actions and issued a Fleet Status Report.

Fleet Rationalization Actions

• The Company recently decided to retire three semisubmersibles from its fleet: VALARIS DPS-5, which has been idle since last working in third quarter 2024, as well as VALARIS DPS-3 and VALARIS DPS-6, which have been stacked for several years. The Company expects that these rigs will be removed from the global drilling supply and repurposed for alternative uses or scrapped.
• Jackup VALARIS 75 has been sold for $24 million. VALARIS 75 is a 25-year-old jackup that has been stacked in the U.S. Gulf for five years. As part of the purchase and sale agreement, future operations are restricted to the U.S. Gulf.President and Chief Executive Officer Anton Dibowitz said, “We are committed to prudently managing our fleet and will retire or divest rigs when the expected future economic benefit for an asset does not justify its costs. Consistent with this approach, we have decided to high-grade our fleet by retiring three semisubmersibles: VALARIS DPS-3, DPS-5 and DPS-6, for which we see limited attractive, long-term contract opportunities, as well as selling jackup VALARIS 75. These actions reduce costs for idle rigs, benefit our cash flow and further focus our fleet on high-specification assets.”

  Fleet Status Report

  The Company has also issued a Fleet Status Report, announcing new contracts and contract extensions, with associated contract backlog of approximately $120 million, awarded subsequent to issuing the Company’s previous Fleet Status Report on October 30, 2024:

• 600-day priced contract extension with TotalEnergies in the UK North Sea for jackup VALARIS Stavanger. The priced extension is expected to commence in the third quarter 2025 in direct continuation of the current program. The total contract value for the priced extension is over $75 million.
• 100-day contract for jackup VALARIS 249 with BP offshore Trinidad. The contract is expected to commence in the first quarter 2026 in direct continuation of the rig’s previous program with another operator. The total contract value is approximately $16.8 million.

• One-well contract with Jadestone Energy offshore Australia for jackup VALARIS 247. The contract is expected to commence in March 2025 in direct continuation of the rig’s current program with another operator.
• Two-well priced option exercised by BP Indonesia for jackup VALARIS 106. The option period has an estimated duration of 80 days and is expected to commence in May 2025 in direct continuation of the existing firm program. The operating day rate is $95,000.
• Short-term bareboat charter agreement extensions through February 28, 2025, for jackups VALARIS 116, VALARIS 146 and VALARIS 250, which are leased to ARO Drilling (“ARO”). Valaris and ARO remain in discussions with Saudi Aramco regarding longer-term contract extensions for these rigs.