Valaris : LimitedFleet Status ReportJanuary 12, 2023 - Form 8-K

January 13, 2023 at 08:30 am EST

Valaris Limited
Fleet Status Report
January 12, 2023

New Contracts and Extensions, Rig Sales and Other Updates Since Last Fleet Status Report

Floaters

•Four-well contract with BP offshore Egypt for drillship VALARIS DS-12. The contract is expected to commence late in third quarter or early in fourth quarter 2023 and has an estimated duration of 320 days. The estimated total contract value, inclusive of a mobilization fee, is $136 million.

•Option exercised by TotalEnergies EP Brasil offshore Brazil for drillship VALARIS DS-15. Following the exercise of this option, the rig is expected to be under contract through December 2023. There is one priced option remaining with an estimated duration of 100 days.

Jackups

•Two one-year options exercised by Harbour Energy in the UK North Sea for heavy duty harsh environment jackup VALARIS 120. The first option period is expected to commence in July 2023 in direct continuation of the existing contract.

•One-well contract with Petrofac in the UK North Sea for heavy duty harsh environment jackup VALARIS 121. The contract is expected to commence early in third quarter 2023 and has an estimated duration of 70-100 days.

•210-day contract with Shell in the UK North Sea for heavy duty harsh environment jackup VALARIS 121. The contract is expected to commence early in fourth quarter 2023. The expected total contract value is over $25 million. The contract has four priced options.

•90-day contract with Kistos in the Dutch North Sea for heavy duty harsh environment jackup VALARIS 123. The contract commenced in November 2022. VALARIS 123 will use its selective reduction (SCR) system during the contract with Kistos to significantly reduce NOx emissions from the rig.

•195-day contract with ONE-Dyas in the Dutch North Sea for heavy duty harsh environment jackup VALARIS 123. The contract is expected to commence in first quarter 2023 in direct continuation of the rig's current contract. VALARIS 123 will utilize its selective catalytic reduction (SCR) system during the contract with ONE-Dyas to significantly reduce NOx emissions from the rig.

•180-day contract with Perenco in the UK North Sea for heavy duty ultra-harsh environment jackup VALARIS 247. The contract is expected to commence in first quarter 2023. The contract has one 60-day priced option.

•90-day option exercised by Cantium in the U.S. Gulf of Mexico for standard duty modern jackup VALARIS 144. The option period is expected to commence in March 2023 in direct continuation of the existing contract. The operating day rate for the option period is $85,000.

•One-well option exercised by Talos in the U.S. Gulf of Mexico for standard duty modern jackup VALARIS 144. The option is in direct continuation of the existing program and has an estimated duration of 30 days. The operating day rate is $86,900.

•One-well contract with North Sea Natural Resources in the UK North Sea for heavy duty ultra-harsh environment jackup VALARIS Norway. The operating day rate is $105,000.

ARO Drilling

•Three-year contract extension offshore Saudi Arabia for standard duty modern jackup VALARIS 147. The extension period commenced in December 2022 in direct continuation of the existing contract. In accordance with the terms of our shareholder agreement, Valaris will bareboat charter VALARIS 147 to ARO.

•Three-year contract extension offshore Saudi Arabia for standard duty modern jackup VALARIS 148. The extension period is expected to commence in February 2023 in direct continuation of the existing contract. In accordance with the terms of our shareholder agreement, Valaris will bareboat charter VALARIS 148 to ARO.

New Disclosure: bolded text signifies items that have not been previously disclosed

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	Valaris Limited Fleet Status Report January 12, 2023


Contract Backlog(1) (2) ($ millions)	2023	2024	2025+	Total	Contracted Days(1) (2)	2023	2024	2025+
Drillships	$	554.9	$	426.3	$	61.1	$	1,042.3	Drillships	2,227	1,323	219
Semisubmersibles	228.2	110.7	-	338.9	Semisubmersibles	942	487	-
Floaters	$	783.1	$	537.0	$	61.1	$	1,381.2	Floaters	3,169	1,810	219

HD - Ultra-Harsh & Harsh	$	195.3	$	91.5	$	24.6	$	311.4	HD - Ultra-Harsh & Harsh	1,874	718	189
HD & SD - Modern	206.0	58.7	92.7	357.4	HD & SD - Modern	2,354	684	823
SD - Legacy	55.4	11.3	-	66.7	SD - Legacy	749	174	-
Jackups	$	456.7	$	161.5	$	117.3	$	735.5	Jackups	4,977	1,576	1,012

Other(3)	$	152.1	$	87.6	$	31.3	$	271.0	Other(3)	3,530	2,968	1,050

Total	$	1,391.9	$	786.1	$	209.7	$	2,387.7	Total	11,676	6,354	2,281

ARO Drilling(4)	Average Day Rates(1) (2)	2023	2024	2025+
Owned Rigs	$	238.5	$	246.6	$	336.3	$	821.4	Drillships	$	249,000	$	322,000	$	279,000
Leased Rigs	269.2	280.0	101.7	650.9	Semisubmersibles	242,000	227,000	-
Total	$	507.7	$	526.6	$	438.0	$	1,472.3	Floaters	$	247,000	$	297,000	$	279,000

HD - Ultra-Harsh & Harsh	$	104,000	$	127,000	$	130,000
HD & SD - Modern	88,000	86,000	113,000
SD - Legacy	74,000	65,000	-
Jackups	$	92,000	$	102,000	$	116,000

(1) Contract backlog, contracted days and average day rates as of January 12, 2023. (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. Average day rates are adjusted to exclude suspension backlog and days. (3) Other represents contract backlog and contracted days related to bareboat charter agreements and management services contracts. (4) ARO Drilling contract backlog as of January 12, 2023. HD = Heavy Duty; SD = Standard Duty

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	Valaris Limited Fleet Status Report January 12, 2023


Asset Category / Rig	Design	Year Delivered	Customer	Location	Contract Start Date	Contract End Date(1)	Day Rate(2)	Comments
Drillships
VALARIS DS-18	GustoMSC P10000	2015	Chevron	U.S. GOM	Aug 22	Jul 25	Contract includes MPD services
VALARIS DS-17	GustoMSC P10000	2014	Equinor	Brazil	Jun 23	Dec 24	Contract includes MPD and additional services. Rig being reactivated in Spain. Total contract value of $327 million, including an upfront payment of approx. $86 million for mobilization, capital upgrades and a contribution towards reactivation costs. Two priced options each with an estimated duration of 60 days
VALARIS DS-16	GustoMSC P10000	2014	Occidental	U.S. GOM	May 22	May 24	Contract includes MPD services. 1-year priced option
VALARIS DS-15	GustoMSC P10000	2014	TotalEnergies	Brazil	Jun 21	Dec 23	Contract includes MPD services. Priced option with an estimated duration of 100 days
VALARIS DS-12	DSME 12000	2014	BP Undisclosed BP	Mauritania/Senegal Angola Egypt	Apr 22 Mar 23 Oct 23	Feb 23 May 23 Aug 24	Total contract value of $26.2 million Total contract value of $136 million
VALARIS DS-10	Samsung GF12000	2017	SNEPCo	Nigeria	Apr 22	Apr 23	Priced option with an estimated duration of 330 days
VALARIS DS-9	Samsung GF12000	2015	ExxonMobil	Angola	Jul 22	Jul 24	Contract includes MPD services. Four 6-month priced options
VALARIS DS-4	Samsung 96K	2010	Petrobras	Brazil	Jul 22	Dec 23	Contract includes MPD and additional services. 6-month priced option
Stacked
VALARIS DS-11	DSME 12000	2013	Spain
VALARIS DS-8	Samsung GF12000	2015	Spain
VALARIS DS-7	Samsung 96K	2013	Spain
Purchase Options(3)
VALARIS DS-14	DSME 12000	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	South Korea	Option to take delivery by year-end 2023. Purchase price of approx. $119 million assuming a Dec 31, 2023 delivery