Valaris Limited, an offshore drilling services provider, has announced that it will permanently retire three semi-submersible rigs as part of its efforts to streamline its drilling fleet. Additionally, the offshore driller has announced the sale of a jack-up rig for $24 million. The three semi-submersible rigs are expected to be out of service and permanently removed from the global drilling supply.
The company will retire the three semi-submersibles — VALARIS DPS-5, VALARIS DPS-3 and VALARIS DPS-6. VALARIS DPS-5 has remained inactive since the completion of its last assignment in the third quarter of 2024,while VALARIS DPS-3 and VALARIS DPS-6 have been cold-stacked in the U.S. Gulf of Mexico for the past several years. The retired drilling rigs might be upcycled to be used for alternative purposes or scrapped entirely.
The offshore driller announced the sale of the Valaris 75 jack-up rig, which has been out of service for the past five years in the Gulf of Mexico. The jack-up rig was sold to an undisclosed operator. The purchase and sale agreement (SPA) for this rig included a clause stating that any future operation undertaken by the rig shall be confined to the U.S. Gulf of Mexico.
Valaris stated that it plans to continuously optimize its fleet by divesting the rigs that do not provide adequate returns to justify the cost of maintaining them. By retiring its idle assets, the company plans to focus on high-specification vessels within its fleet and cut costs associated with the cold-stacked rigs.
VAL mentioned that the three semi-submersibles show limited potential for lucrative opportunities in the long term and divesting these assets should benefit its cash flow and upgrade its rig fleet.
