Valaris Added $220 Million to Drilling Backlog
New offshore contracts and extensions provide revenue visibility for this global drilling fleet operator.
Updated on Oct. 7, 2026 in Oil and Gas
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Valaris secured $220 million in new drilling contract awards and extensions across its fleet, including commitments for operations in Suriname, Australia, and the North Sea. These agreements bolster the company’s future revenue backlog following a period of fleet optimization.
Why it matters
Securing long-term commitments for expensive drilling assets reduces idle-time overhead and provides predictable cash flows for operators managing capital-intensive energy infrastructure. These contracts signify sustained demand for offshore exploration and maintenance services heading into 2027.
The company added $220 million in total backlog through contracts including a $50 million deal for VALARIS 107 and a $41.5 million plug and abandonment project. These agreements feature various terms, such as a $115,000 daily rate for the VALARIS 122 extension.
The players
Valaris
An international offshore drilling contractor that owns and manages a fleet of drillships and jack-up rigs for global energy firms.
PETRONAS
A state-owned Malaysian oil and gas company with extensive global upstream exploration and production operations.
Eni
An Italian multinational energy company integrated across the oil and gas value chain with significant offshore assets.
Seatrium
A global engineering and construction company providing services to the offshore, marine, and energy sectors.
The details
The backlog expansion follows a recent fleet update and the strategic recycling of the VALARIS MS-1 and VALARIS 111 rigs in September 2026. Operational adjustments include reassigning projects between the VALARIS 72 and VALARIS 121 to optimize execution in the East Irish Sea. These moves allow the company to maintain utilization rates while phasing out older, less efficient equipment.
Timeline
September 2026: Valaris sold two drilling rigs for recycling.
Q4 2026: PETRONAS drilling campaign in Suriname commences.
November 2026: VALARIS 121 begins its assigned project work.
February 2027: The VALARIS 122 contract extension takes effect.
March 2027: VALARIS 72 completes its current contract obligation.
Market Landscape
Valaris's decision to recycle older units follows the industry trend seen throughout 2026 of reducing carbon footprints by retiring obsolete semisubmersibles and jack-ups. This activity marks a continuation of the industry-wide effort to rationalize asset portfolios to match current deepwater demand.
Operators should monitor these backlog trends as signals of available offshore rig capacity and regional day-rate pricing. Managing fleet utilization via contract extensions and strategic asset recycling remains the primary lever for protecting margins in a volatile energy market.
The takeaway
Maintaining a healthy contract backlog through long-term service agreements helps insulate specialized equipment operators from short-term market fluctuations. Review your own firm's forward-looking revenue visibility to ensure upcoming contract expirations are balanced by active renewal discussions.
Further reading
For more on industry asset management, read the latest analysis in Oil and Gas.
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