 | Valaris Limited Fleet Status Report May 2, 2022 | |||||||||||||
| New Contracts and Extensions, Rig Sales and Other Updates Since Last Fleet Status Report | ||
Floaters •Two-well contract with a major operator offshore Angola and the Republic of Congo for drillship VALARIS DS-12. The contract is expected to take place during the first quarter 2023 and has a total contract value of $26.2 million. •One-well contract extension with TotalEnergies EP Brazil offshore Brazil for drillship VALARIS DS-15. The option well is in direct continuation of the current firm program and has an estimated duration of 100 days. Jackups •One-well contract with an undisclosed operator offshore Australia for heavy duty modern jackup VALARIS 107. The contract is expected to commence in July 2022 with an estimated duration of 37 days. The operating rate is $112,000 per day. •One-well contract with Eni offshore Australia for heavy duty modern jackup VALARIS 107. The contract is expected to commence in August 2022 with an estimated duration of 70 days. The operating rate is $115,000 per day. •29-day contract extension with Harbour Energy in the UK North Sea for heavy duty ultra-harsh environment jackup VALARIS Norway. •14-day contract extension with BP in the UK North Sea for heavy duty ultra-harsh environment jackup VALARIS Norway. Other •Two-year contract extensions with BP in the U.S. Gulf of Mexico for managed rigs Mad Dog and Thunder Horse. The contract extensions were effective on January 27, 2022. •ARO Drilling awarded a three-year contract with Saudi Aramco for standard duty modern jackup VALARIS 140. This contract relates to the previously disclosed three-year bareboat charter agreement between Valaris and ARO Drilling. VALARIS DS-11 •The previously disclosed contract awarded to VALARIS DS-11 for an eight-well contract for a deepwater project in the U.S. Gulf of Mexico has been novated from TotalEnergies to Equinor. No material changes to the contract resulted from the novation, including with respect to the termination provisions in the event the project does not receive final investment decision (FID). Total contract backlog includes approximately $428 million related to this contract. Rig Sales •VALARIS 113 and 114 have been sold to ADES Saudi Limited for a total of $125 million. •VALARIS 67 has been sold and retired from the offshore drilling fleet. Day Rate Disclosures •Going forward, we intend to disclose day rates and other forms of contractual compensation, such as lump sum mobilization payments, for new contracts and extensions, unless such disclosures are restricted by confidentiality provisions. | ||
New Disclosure: bolded text signifies items that have not been previously disclosed
Page 1 of 12
| Valaris Limited Fleet Status Report May 2, 2022 | |||||||||||||
Contract Backlog(1) (2) ($ millions) | 2022 | 2023 | 2024+ | Total | Contracted Days(1) (2) | 2022 | 2023 | 2024+ | |||||||||||||||||||||
Drillships(3) | $ | 314.4 | $ | 337.7 | $ | 638.8 | $ | 1,290.9 | Drillships(3) | 1,484 | 1,499 | 2,122 | |||||||||||||||||
| Semisubmersibles | 130.3 | 156.4 | 89.1 | 375.8 | Semisubmersibles | 643 | 712 | 391 | |||||||||||||||||||||
| Floaters | $ | 444.7 | $ | 494.1 | $ | 727.9 | $ | 1,666.7 | Floaters | 2,127 | 2,211 | 2,513 | |||||||||||||||||
| HD - Ultra-Harsh & Harsh | $ | 182.3 | $ | 36.5 | $ | — | $ | 218.8 | HD - Ultra-Harsh & Harsh | 1,711 | 363 | — | |||||||||||||||||
| HD & SD - Modern | 131.1 | 74.5 | 20.1 | 225.7 | HD & SD - Modern | 1,674 | 894 | 298 | |||||||||||||||||||||
| SD - Legacy | 36.8 | 33.9 | — | 70.7 | SD - Legacy | 534 | 469 | — | |||||||||||||||||||||
| Jackups | $ | 350.2 | $ | 144.9 | $ | 20.1 | $ | 515.2 | Jackups | 3,919 | 1,726 | 298 | |||||||||||||||||
Other(4) | $ | 88.0 | $ | 126.5 | $ | 57.0 | $ | 271.5 | Other(4) | 2,017 | 2,555 | 1,939 | |||||||||||||||||
| Total | $ | 882.9 | $ | 765.5 | $ | 805.0 | $ | 2,453.4 | Total | 8,063 | 6,492 | 4,750 | |||||||||||||||||
ARO Drilling(5) | Average Day Rates(1) (2) | 2022 | 2023 | 2024+ | |||||||||||||||||||||||||
| Owned Rigs | $ | 164.1 | $ | 246.6 | $ | 582.9 | $ | 993.6 | Drillships(3) | $ | 212,000 | $ | 225,000 | $ | 301,000 | ||||||||||||||
| Leased Rigs | 140.5 | 175.6 | 180.8 | 496.9 | Semisubmersibles | 203,000 | 220,000 | 228,000 | |||||||||||||||||||||
| Total | $ | 304.6 | $ | 422.2 | $ | 763.7 | $ | 1,490.5 | Floaters | $ | 209,000 | $ | 223,000 | $ | 290,000 | ||||||||||||||
| Valaris 50% Share of ARO Owned Rigs | $ | 82.1 | $ | 123.3 | $ | 291.4 | $ | 496.8 | HD - Ultra-Harsh & Harsh | $ | 107,000 | $ | 100,000 | $ | — | ||||||||||||||
Adjusted Total(6) | $ | 965.0 | $ | 888.8 | $ | 1,096.4 | $ | 2,950.2 | HD & SD - Modern | 78,000 | 83,000 | 68,000 | |||||||||||||||||
| SD - Legacy | 69,000 | 72,000 | — | ||||||||||||||||||||||||||
(1) Contract backlog, contracted days and average day rates as of May 2, 2022. (2) Contract backlog and average day rates exclude certain types of non-recurring revenues such as lump sum mobilization payments. Contract backlog and contracted days include backlog and days when a rig is under suspension. Contract backlog includes drilling contracts subject to final investment decision (FID) and drilling contracts which grant the customer termination rights if FID is not received with respect to projects for which the drilling rig is contracted. Average day rates are adjusted to exclude suspension backlog and days. (3) Total contract backlog includes approximately $428 million related to a contract for drillship VALARIS DS-11. In March 2022, the contract was novated from TotalEnergies to Equinor. No material changes to the contract resulted from the novation, including with respect to the termination provisions in the event the project does not receive final investment decision (FID). | Jackups | $ | 89,000 | $ | 84,000 | $ | 68,000 | ||||||||||||||||||||||
| (4) Other represents contract backlog and contracted days related to bareboat charter agreements and management services contracts. (5) ARO Drilling contract backlog as of May 2, 2022. (6) Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO owned rigs. HD = Heavy Duty; SD = Standard Duty | |||||||||||||||||||||||||||||
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| Valaris Limited Fleet Status Report May 2, 2022 | |||||||||||||
| Asset Category / Rig | Design | Year Delivered | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Day Rate | Comments | ||||||||||||||||||||||||||||||||||||||||||
| Drillships | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-18 | GustoMSC P10000 | 2015 | Chevron Chevron | U.S. GOM U.S. GOM | Aug 20 Jul 22 | Jun 22 Jun 25 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-16 | GustoMSC P10000 | 2014 | Occidental | U.S. GOM | May 22 | May 24 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-15 | GustoMSC P10000 | 2014 | TotalEnergies | Brazil | Jun 21 | Dec 22 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-12 | DSME 12000 | 2014 | BP BP Undisclosed | Angola Mauritania Angola | Sep 21 Apr 22 Jan 23 | Apr 22 Dec 22 Mar 23 | Confidential | Total contract value of $26.2 million | ||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-10 | Samsung GF12000 | 2017 | Shell Shell | Namibia Nigeria | Nov 21 Apr 22 | Apr 22 Oct 22 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-9 | Samsung GF12000 | 2015 | ExxonMobil | Angola | Jun 22 | Jun 24 | Rig being reactivated in Spain | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-4 | Samsung 96K | 2010 | Petrobras | Brazil | Jun 22 | Dec 23 | ||||||||||||||||||||||||||||||||||||||||||||
| Stacked | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-17 | GustoMSC P10000 | 2014 | Stacked | Spain | ||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-11 | DSME 12000 | 2013 | Equinor | U.S. GOM | Jul 24 | Dec 27 | Rig stacked in Spain. In March 2022, the contract was novated from TotalEnergies to Equinor. No material changes to the contract resulted from the novation, including with respect to the termination provisions in the event the project does not receive final investment decision (FID) | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-8 | Samsung GF12000 | 2015 | Stacked | Spain | ||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-7 | Samsung 96K | 2013 | Stacked | Spain | ||||||||||||||||||||||||||||||||||||||||||||||
Purchase Options(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-14 | DSME 12000 | Under Construction | South Korea | Option to take delivery by year-end 2023. Purchase price of approx. $218 million assuming a Dec 31, 2023 delivery | ||||||||||||||||||||||||||||||||||||||||||||||
VALARIS DS-13 | DSME 12000 | Under Construction | South Korea | Option to take delivery by year-end 2023. Purchase price of approx. $119 million assuming a Dec 31, 2023 delivery | ||||||||||||||||||||||||||||||||||||||||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| Valaris Limited Fleet Status Report May 2, 2022 | |||||||||||||
| Asset Category / Rig | Design | Year Delivered | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Day Rate | Comments | ||||||||||||||||||||||||||||||||||||||||||
| Semisubmersibles | ||||||||||||||||||||||||||||||||||||||||||||||||||
VALARIS DPS-5 | ENSCO 8500 Series, DP + Moored | 2012 | Kosmos Apache Murphy Murphy | U.S. GOM U.S. GOM U.S. GOM Mexico | Mar 22 Jul 22 Aug 22 Sep 22 | Jul 22 Aug 22 Sep 22 Nov 22 | ||||||||||||||||||||||||||||||||||||||||||||
VALARIS DPS-1 | F&G ExD Millennium, DP | 2012 | Woodside Woodside | Australia Australia | Apr 22 Feb 23 | Feb 23 Jun 24 | ||||||||||||||||||||||||||||||||||||||||||||
VALARIS MS-1 | F&G ExD Millennium, Moored | 2011 | Eni Western Gas Santos Undisclosed | Australia Australia Australia Australia | Nov 21 May 22 Jul 22 Oct 23 | Feb 22 Jul 22 Oct 23 Aug 24 | The October 2023 contract is subject to final investment decision (FID) by the customer | |||||||||||||||||||||||||||||||||||||||||||
| Stacked | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS DPS-6 | ENSCO 8500 Series, DP | 2012 | Stacked | U.S. GOM | ||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS DPS-3 | ENSCO 8500 Series, DP + Moored | 2010 | Stacked | U.S. GOM | ||||||||||||||||||||||||||||||||||||||||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| Valaris Limited Fleet Status Report May 2, 2022 | |||||||||||||
| Asset Category / Rig | Design | Year Delivered | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Day Rate | Comments | ||||||||||||||||||||||||||||||||||||||||||
| Jackups | ||||||||||||||||||||||||||||||||||||||||||||||||||
Heavy Duty Ultra-Harsh Environment(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS Norway | KFELS N Class | 2011 | Harbour Energy BP Centrica Storage | UK UK UK | Dec 21 May 22 Sep 22 | Apr 22 Sep 22 Jan 23 | Accommodation work | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS Stavanger | KFELS N Class | 2011 | Equinor | Norway | Oct 19 | Jul 22 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS Viking | KFELS N Class | 2010 | Sval Energi Repsol | Norway Norway | Mar 22 Jun 22 | May 22 Nov 22 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 250 | LT Super Gorilla XL | 2003 | Saudi Aramco | Saudi Arabia | Jun 18 | Dec 24 | Leased to ARO Drilling(4) | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 249 | LT Super Gorilla | 2002 | OMV | New Zealand | Feb 22 | Mar 23 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 248 | LT Super Gorilla | 2000 | Neptune | UK | Aug 20 | Feb 23 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 247 | LT Super Gorilla | 1998 | DNO | UK | May 21 | Dec 22 | ||||||||||||||||||||||||||||||||||||||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| Valaris Limited Fleet Status Report May 2, 2022 | |||||||||||||
| Asset Category / Rig | Design | Year Delivered | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Day Rate | Comments | ||||||||||||||||||||||||||||||||||||||||||
| Jackups | ||||||||||||||||||||||||||||||||||||||||||||||||||
Heavy Duty Harsh Environment(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 123 | KFELS Super A | 2019 | TAQA Capricorn | Netherlands UK | Jan 22 May 22 | May 22 Aug 22 | ||||||||||||||||||||||||||||||||||||||||||||
VALARIS 122 | KFELS Super A | 2014 | Shell | UK | Jan 20 | Oct 22 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 121 | KFELS Super A | 2013 | Harbour Energy | UK | Jul 21 | Jul 22 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 120 | KFELS Super A | 2013 | Harbour Energy | UK | Jul 17 | Jul 23 | ||||||||||||||||||||||||||||||||||||||||||||
| Stacked | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 102 | KFELS MOD V-A | 2002 | Stacked | U.S. GOM | ||||||||||||||||||||||||||||||||||||||||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 6 of 12
| Valaris Limited Fleet Status Report May 2, 2022 | |||||||||||||
| Asset Category / Rig | Design | Year Delivered | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Day Rate | Comments | ||||||||||||||||||||||||||||||||||||||||||
| Jackups | ||||||||||||||||||||||||||||||||||||||||||||||||||
Heavy Duty - Modern(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 118 | LT 240-C | 2011 | Fieldwood BP | Mexico Trinidad | Mar 20 Oct 22 | May 22 Jun 23 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 117 | LT 240-C | 2009 | Eni | Mexico | Dec 21 | Dec 23 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 116 | LT 240-C | 2008 | Saudi Aramco | Saudi Arabia | Dec 18 | Dec 24 | Leased to ARO Drilling(4) | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 115 | BM Pacific Class 400 | 2013 | Mubadala Petroleum | Thailand | Feb 22 | Sep 22 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 110 | KFELS MOD V-B | 2015 | North Oil Company | Qatar | Oct 21 | Oct 24 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 108 | KFELS MOD V-B | 2007 | Saudi Aramco | Saudi Arabia | Nov 18 | Nov 22 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 107 | KFELS MOD V-B | 2006 | Carnarvon Petroleum Vermilion Oil & Gas Undisclosed Eni | Timor-Leste Australia Australia Australia | Jan 22 May 22 Jul 22 Aug 22 | Feb 22 Jul 22 Aug 22 Oct 22 | $112,000 $115,000 | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 106 | KFELS MOD V-B | 2005 | BP | Indonesia | Jan 18 | Jan 23 | ||||||||||||||||||||||||||||||||||||||||||||
| Stacked | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 111 | KFELS MOD V-B | 2003 | Stacked | Croatia | ||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 109 | KFELS MOD V-Super B | 2008 | Stacked | Namibia | ||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 104 | KFELS MOD V-B | 2002 | Stacked | UAE | ||||||||||||||||||||||||||||||||||||||||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| Valaris Limited Fleet Status Report May 2, 2022 | |||||||||||||
| Asset Category / Rig | Design | Year Delivered | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Day Rate | Comments | ||||||||||||||||||||||||||||||||||||||||||
| Jackups | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Standard Duty - Modern | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 148 | LT Super 116-E | 2013 | Saudi Aramco | Saudi Arabia | Nov 19 | Nov 22 | Leased to ARO Drilling(4) | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 147 | LT Super 116-E | 2013 | Saudi Aramco | Saudi Arabia | Sep 19 | Aug 22 | Leased to ARO Drilling(4) | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 146 | LT Super 116-E | 2011 | Saudi Aramco | Saudi Arabia | Sep 18 | Dec 24 | Leased to ARO Drilling(4) | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 144 | LT Super 116-E | 2010 | W&T Offshore Undisclosed Undisclosed | U.S. GOM U.S. GOM U.S. GOM | Dec 21 Feb 22 Apr 22 | Feb 22 Apr 22 Jul 22 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 143 | LT Super 116-E | 2010 | Saudi Aramco | Saudi Arabia | Oct 18 | Dec 24 | Leased to ARO Drilling(4) | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 141 | LT Super 116-E | 2016 | Saudi Aramco | Saudi Arabia | Aug 18 | Apr 22 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 140 | LT Super 116-E | 2016 | Saudi Aramco | Saudi Arabia | Mar 22 | Mar 25 | Leased to ARO Drilling(4) | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 76 | LT Super 116-C | 2000 | Saudi Aramco | Saudi Arabia | Jan 15 | Dec 22 | ||||||||||||||||||||||||||||||||||||||||||||
| Stacked | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 145 | LT Super 116-E | 2010 | Stacked | U.S. GOM | ||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 75 | LT Super 116-C | 1999 | Stacked | U.S. GOM | ||||||||||||||||||||||||||||||||||||||||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 8 of 12
| Valaris Limited Fleet Status Report May 2, 2022 | |||||||||||||
| Asset Category / Rig | Design | Year Delivered | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Day Rate | Comments | ||||||||||||||||||||||||||||||||||||||||||
| Jackups | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Standard Duty - Legacy | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 92 | LT 116-C | 1982 | Harbour Energy | UK | Feb 17 | Jul 23 | Planned maintenance for approx. 30 days in 2Q22 | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 72 | Hitachi K1025N | 1981 | Eni | UK | Jan 20 | Aug 23 | Planned maintenance for approx. 30 days in 4Q22 | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 54 | F&G L-780 Mod II-C | 1982 | Saudi Aramco | Saudi Arabia | Sep 14 | Sep 22 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 36 | LT 116-C | 1981 | Saudi Aramco | Saudi Arabia | Sep 18 | May 22 | Leased to ARO Drilling(4) | |||||||||||||||||||||||||||||||||||||||||||
| Sold / Held for Sale | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 114 | BM Pacific Class 400 | 2012 | Sold | |||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 113 | BM Pacific Class 400 | 2012 | Sold | |||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 67 | LT 84-CE | 1976 | Sold | |||||||||||||||||||||||||||||||||||||||||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 9 of 12
| Valaris Limited Fleet Status Report May 2, 2022 | |||||||||||||
| Asset Category / Rig | Design | Customer/ Status | Location | Contract Start Date | Contract End Date(1) | Day Rate | Comments | |||||||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||||||||||||||
| Drilling Management | ||||||||||||||||||||||||||||||||||||||||||||
| Thunder Horse | Deepwater Semisubmersible | BP | U.S. GOM | Jan 17 | Jan 24 | |||||||||||||||||||||||||||||||||||||||
| Mad Dog | Deepwater Spar Drilling Rig | BP | U.S. GOM | Jan 17 | Jan 24 | |||||||||||||||||||||||||||||||||||||||
| ARO Drilling | ||||||||||||||||||||||||||||||||||||||||||||
| Jackup Rigs Owned by ARO Drilling | ||||||||||||||||||||||||||||||||||||||||||||
| ARO 2001 | LT 116-C | Saudi Aramco | Saudi Arabia | Oct 17 | Jan 26 | |||||||||||||||||||||||||||||||||||||||
| ARO 2003 | BM 200-H | Saudi Aramco | Saudi Arabia | Feb 18 | Feb 26 | |||||||||||||||||||||||||||||||||||||||
| ARO 3001 | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct 17 | Jan 26 | Planned maintenance for approx. 60 days in 3Q22 | ||||||||||||||||||||||||||||||||||||||
| ARO 3002 | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct 17 | Jan 26 | Planned maintenance for approx. 55 days in 3Q22 | ||||||||||||||||||||||||||||||||||||||
| ARO 3003 | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct 18 | Dec 26 | |||||||||||||||||||||||||||||||||||||||
| ARO 3004 | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct 18 | Dec 26 | |||||||||||||||||||||||||||||||||||||||
| ARO 4001 | KFELS Super B | Saudi Aramco | Saudi Arabia | Oct 17 | Jan 26 | Planned maintenance for approx. 45 days in 3Q22 | ||||||||||||||||||||||||||||||||||||||
| ARO 2005 | LT 116-C | Under Construction | Saudi Arabia | Delivery expected in 1H23 | ||||||||||||||||||||||||||||||||||||||||
| ARO 2006 | LT 116-C | Under Construction | Saudi Arabia | Delivery expected in 1H23 | ||||||||||||||||||||||||||||||||||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
(1) Contract duration does not include any unexercised optional extensions. Contract end dates can vary based on how long it takes to complete the wells subject to the contract.
(2) Valaris has the right, but not the obligation, to take delivery of either or both rigs on or before December 31, 2023. Not included in Valaris' fleet count.
(3) Heavy duty jackups are well-suited for operations in tropical revolving storm areas.
(4) Rigs leased to ARO Drilling via bareboat charter agreements to fulfill contracts between ARO Drilling and Saudi Aramco.
Page 10 of 12
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| Valaris Limited Fleet Status Report May 2, 2022 | |||||||||||||
Additional Information Regarding this Fleet Status Report
Day Rate and Terms. The day rates reflected in this Fleet Status Report are stated in U.S. dollars and are the operating day rates charged to customers, which may include estimated contractual adjustments for changes in operating costs and/or reimbursable cost adjustments for ongoing expenses such as crew, catering, insurance and taxes. The day rates, however, do not include certain types of non-recurring revenues such as lump sum mobilization payments, revenues earned during mobilizations, revenues associated with contract preparation and other non-recurring reimbursable items such as mobilizations and capital enhancements, and the impact of the fair market value adjustments to previously acquired drilling contracts. Routine and non-routine downtime may reduce the actual revenues recognized during the contract term. Additionally, we sometimes negotiate special rates and/or day rate adjustments with customers that may reduce revenues recognized.
Forward-Looking Statements. Statements contained in this Fleet Status Report that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "likely," "plan," "project," "could," "may," "might," "should," "will" and similar words and specifically include statements regarding future rig day rates, including adjustments with customers; future levels of offshore drilling activity; expected utilization, day rates, revenues, operating expenses, rig commitments and availability, cash flow, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the effect, impact, potential duration and other implications of the ongoing COVID-19 pandemic; impact of our emergence from bankruptcy; the offshore drilling market, including supply and demand, customer drilling programs, stacking and reactivation of rigs, effects of new and reactivated rigs on the market and effects of volatility in commodity prices; expected work commitments, awards and contracts; letters of intent; scheduled delivery dates for rigs; performance of our joint venture with Saudi Aramco; the timing of delivery, mobilization, contract commencement, availability, relocation or other movement of rigs; expected divestitures of assets; general market, business and industry conditions, trends and outlook; general political conditions, including political tensions, conflicts and war (such as the ongoing conflict in Ukraine); future operations; increasing regulatory complexity; and expense management. The forward-looking statements contained in this press release are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including the COVID-19 outbreak and global pandemic and the related public health measures implemented by governments worldwide, which may, among other things, impact our ability to staff rigs and rotate crews; cancellation, suspension, renegotiation or termination of drilling contracts and programs, including drilling contracts which grant the customer termination rights if final investment decision (FID) is not received with respect to projects for which the drilling rig is contracted; potential additional asset impairments; failure to satisfy our debt obligations; our ability to obtain financing, service our debt, fund capital expenditures and pursue other business opportunities; adequacy of sources of liquidity for us and our customers; the effects of our emergence from bankruptcy on the Company's business, relationships, comparability of our financial results and ability to access financing sources; actions by regulatory authorities, or other third parties; actions by our security holders; commodity price fluctuations and volatility, customer demand, new rig supply, downtime and other risks associated with offshore rig operations; severe weather or hurricanes; changes in worldwide rig supply and demand, competition and technology; consumer preferences for alternative fuels; increased scrutiny of our Environmental, Social and Governance ("ESG") practices and reporting responsibilities; changes in customer strategy; governmental action, civil unrest and political and economic uncertainties; terrorism, piracy and military action; risks inherent to shipyard rig reactivation, upgrade, repair, maintenance or enhancement; our ability to enter into, and the terms of, future drilling contracts; suitability of rigs for future contracts; the cancellation of letters of intent or letters of award or any failure to execute definitive contracts following announcements of letters of intent, letters of award or other expected work commitments; the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; environmental or other liabilities, risks or losses; debt restrictions that may limit our liquidity and flexibility; and cybersecurity risks and threats. In addition to the numerous factors described above, you should also carefully read and consider "Item 1A. Risk Factors" in Part I and "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our most recent annual report on Form 10-K, which is available on the SEC’s website at www.sec.gov or on the Investor Relations section of our website at www.valaris.com. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to update or revise any forward-looking statements, except as required by law.
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