About Valaris

Valaris Limited (Valaris) operates as a global offshore contract drilling company. The company is a leading provider of offshore contract drilling services to the international oil and gas industry with operations in almost every major offshore market across six continents. The company owns the world's largest offshore drilling rig fleet, including one of the newest ultra-deepwater fleets in the industry and a leading premium jackup fleet. The company owns 53 rigs, including 13 drillships, four dynamically positioned semisubmersible rigs, one moored semisubmersible rig, 35 jackup rigs and a 50% equity interest in ARO, the company's 50/50 unconsolidated joint venture with Saudi Aramco, which owns an additional eight rigs. The company's customers include many of the leading international and government-owned oil and gas companies, in addition to many independent operators. The company is among the most geographically diverse offshore drilling companies with global operations. The markets in which the company operates include the Gulf of Mexico, South America, the North Sea, the Middle East, Africa and the Asia Pacific. The company provides drilling services on a day rate contract basis. Under day rate contracts, the company provides an integrated service that includes the provision of a drilling rig and rig crews for which the company receives a daily rate that may vary between the full rate and zero rate throughout the duration of the contractual term, depending on the operations of the rig. The company also may receive lump-sum fees or similar compensation for the mobilization, demobilization and capital upgrades of the company's rigs. The company's customers bear substantially all of the costs of constructing the well and supporting drilling operations as well as the economic risk relative to the success of the well. Contract Drilling Operations The company's business consists of four operating segments: (1) Floaters, which includes the company's drillships and semisubmersible rigs; (2) Jackups; (3) ARO; and (4) Other, which consists of management services on rigs owned by third parties and the activities associated with the company's lease arrangements with ARO. Floaters, Jackups and ARO are also reportable segments. The company owns and operates 53 rigs, of which 16 are located in the Middle East and Africa, 16 are located in North and South America, 16 are located in Europe, and five are located in Asia and the Pacific Rim as of December 31, 2023. The company's drilling rigs drill and complete oil and natural gas wells. From time to time, the company's drilling rigs may be utilized as accommodation units or for other ancillary services such as well workovers and interventions, plug and abandonment and decommissioning work and carbon capture and sequestration projects. Major Customers The company provides its contract drilling services to major international, government-owned and independent oil and gas companies. During the year ended December 31, 2023, the company's five largest customers accounted for 40% of consolidated revenues. BP plc, the company's only customer who accounts for 10% or more of consolidated revenues, accounted for 11% of consolidated revenues. Insurance and Indemnification Matters The company's insurance program provides coverage, subject to the policies' terms and conditions and to the extent not otherwise assumed by the customer under the indemnification provisions of the drilling contract, for third-party liability claims arising from the company's operations. The company's insurance program provides coverage that is customary for the company's industry. Generally, the company's insurance program provides third-party liability coverage up to $805.0 million. The company retains the risk for liability not indemnified by the customer in excess of, and for risks not covered by, the company's insurance coverage. The company's insurance program also provides hull and machinery coverage for physical damage (including total loss) to the company's rigs, cargo and equipment, excluding damage arising from a named windstorm in the U.S. Gulf of Mexico. The company separately purchases a small limit of named windstorm insurance for the company's floater rigs in the U.S. Gulf of Mexico. The company carries limited insurance for loss of hire for several of its rigs. Governmental Regulation and Environmental Matters The International Convention on Oil Pollution Preparedness, Response and Cooperation, the International Convention on Civil Liability for Oil Pollution Damage 1992, the U.K. Merchant Shipping Act 1995, Marpol 73/78 (the International Convention for the Prevention of Pollution from Ships), the U.K. Merchant Shipping (Oil Pollution Preparedness, Response and Co-operation Convention) Regulations 1998, as amended, the Oil Pollution Act of 1990 ('OPA 90'), as amended, the Clean Water Act and other U.S. federal statutes applicable to the company and its operations, as well as similar statutes in Texas, Louisiana, other coastal states and other non-U.S. jurisdictions, address oil spill prevention, reporting and control and have significantly expanded potential liability, fine and penalty exposure across many segments of the oil and natural gas industry. History Valaris Limited was founded in 1975. The company was incorporated in 2021.