What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2021-03-02 compared with 2020-02-21 · 82 added, 269 removed, 26 unchanged (93% of the section changed)

Contract Drilling Fleet

The following table provides certain information about the rigs in our drilling fleet by reportable segment as of February 13, 2020 :

Drilling Depth

Dynamically Positioned

10,000'/40,000'

Preservation stacked (1)

Dynamically Positioned

10,000'/40,000'

Dynamically Positioned

10,000'/40,000'

Preservation stacked (1)

Dynamically Positioned

10,000'/40,000'

Dynamically Positioned

10,000'/40,000'

Under contract

Dynamically Positioned

10,000'/40,000'

Under contract

Dynamically Positioned

10,000'/40,000'

Under contract

VALARIS DS-10

Dynamically Positioned

10,000'/40,000'

Under contract

VALARIS DS-11

Dynamically Positioned

12,000'/40,000'

VALARIS DS-12

Dynamically Positioned

12,000'/40,000'

Under contract

VALARIS DS-13

Under construction

Dynamically Positioned

12,000'/40,000'

Under construction (2)

VALARIS DS-14

Under construction

Dynamically Positioned

12,000'/40,000'

Under construction (2)

VALARIS DS-15

Dynamically Positioned

12,000'/40,000'

Gulf of Mexico

Under contract

VALARIS DS-16

Dynamically Positioned

12,000'/40,000'

Gulf of Mexico

Under contract

VALARIS DS-17

Dynamically Positioned

12,000'/40,000'

VALARIS DS-18

Dynamically Positioned

12,000'/40,000'

Gulf of Mexico

Under contract

Semisubmersible

1982/2001/2014

F&G Enhanced Pacesetter

1,500'/25,000'

Mediterranean

Under contract

Semisubmersible

Dynamically Positioned

8,500'/35,000'

Gulf of Mexico

Preservation stacked (1)

Semisubmersible

Dynamically Positioned

8,500'/35,000'

Gulf of Mexico

Preservation stacked (1)

Semisubmersible

Dynamically Positioned

8,500'/35,000'

Gulf of Mexico

Preservation stacked (1)

Semisubmersible

Dynamically Positioned

8,500'/35,000'

Gulf of Mexico

Under contract

Semisubmersible

Dynamically Positioned

8,500'/35,000'

Semisubmersible

Dynamically Positioned

8,500'/35,000'

Under contract

Semisubmersible

Dynamically Positioned

8,500'/35,000'

Gulf of Mexico

Preservation stacked (1)

VALARIS DPS-1

Semisubmersible

Dynamically Positioned

10,000'/35,000'

Under contract

Semisubmersible

F&G ExD Millennium

8200'/32,000'

VALARIS JU-22

Leased to ARO drilling

VALARIS JU-36

Leased to ARO drilling

VALARIS JU-37

Leased to ARO drilling

VALARIS JU-54

1982/1997/2014

F&G L-780 MOD II-C

Under contract

VALARIS JU-67

Under contract

VALARIS JU-70

1981/1996/2014

Hitachi K1032N

United Kingdom

Preservation stacked (1)

VALARIS JU-71

1982/1995/2012

Hitachi K1032N

United Kingdom

Preservation stacked (1)

VALARIS JU-72

Hitachi K1025N

United Kingdom

Under contract

The following table provides certain information about the rigs in our drilling fleet as of February 22, 2021:

Drilling Depth

VALARIS JU-75

MLT Super 116-C

Gulf of Mexico

Under contract

VALARIS JU-76

MLT Super 116-C

Under contract

VALARIS JU-84

1981/2005/2012

Under contract

VALARIS JU-87

Gulf of Mexico

Under contract

VALARIS JU-88

1982/2004/2014

Under contract

VALARIS JU-92

United Kingdom

Under contract

VALARIS JU-100

United Kingdom

Under contract

VALARIS JU-101

KFELS MOD V-A

United Kingdom

Under contract

VALARIS JU-102

KFELS MOD V-A

Gulf of Mexico

Under contract

VALARIS JU-104

KFELS MOD V-B

VALARIS JU-105

KFELS MOD V-B

Preservation stacked (1)

VALARIS JU-106

KFELS MOD V-B

Under contract

VALARIS JU-107

KFELS MOD V-B

Under contract

VALARIS JU-108

KFELS MOD V-B

Under contract

VALARIS JU-109

KFELS MOD V-Super B

Under contract

VALARIS JU-110

KFELS MOD V-B

Under contract

VALARIS JU-111

KFELS MOD V-B

VALARIS JU-113

Pacific Class 400

VALARIS JU-114

Pacific Class 400

VALARIS JU-115

Pacific Class 400

Under contract

VALARIS JU-116

Leased to ARO drilling

VALARIS JU-117

Under contract

VALARIS JU-118

VALARIS JU-120

KFELS Super A

United Kingdom

Under contract

VALARIS JU-121

KFELS Super A

Under contract

VALARIS JU-122

KFELS Super A

United Kingdom

Under contract

VALARIS JU-123

KFELS Super A

United Kingdom

Under contract

VALARIS JU-140

Cameron Letourneau Super 116E

Under contract

VALARIS JU-141

Cameron Letourneau Super 116E

Under contract

VALARIS JU-142

LT Super 116-E

VALARIS JU-143

LT Super 116-E

Leased to ARO drilling

VALARIS JU-144

LT Super 116-E

Under contract

VALARIS JU-145

LT Super 116-E

Gulf of Mexico

VALARIS JU-146

LT Super 116-E

Leased to ARO drilling

VALARIS JU-147

LT Super 116-E

Leased to ARO drilling

VALARIS JU-148

LT Super 116-E

Leased to ARO drilling

VALARIS JU-247

LT Super Gorilla

United Kingdom

Under contract

VALARIS JU-248

LT Super Gorilla

United Kingdom

Under contract

VALARIS JU-249

LT Super Gorilla

United Kingdom

Under contract

VALARIS JU-250

LT Super Gorilla XL

Leased to ARO drilling

VALARIS JU-290

KEFLS N Class

Under contract

VALARIS JU-291

KEFLS N Class

Under contract

VALARIS JU-292

KEFLS N Class

Under contract

VALARIS DS-4 Drillship 2010 Dynamically Positioned 12,000'/40,000' United Kingdom Preservation stacked (1)

VALARIS DS-7 Drillship 2013 Dynamically Positioned 10,000'/40,000' Spain Preservation stacked (1)

VALARIS DS-8 Drillship 2015 Dynamically Positioned 12,000'/40,000' United Kingdom Preservation stacked (1)

VALARIS DS-9 Drillship 2015 Dynamically Positioned 12,000'/40,000' Spain Preservation stacked (1)

VALARIS DS-10 Drillship 2015 Dynamically Positioned 12,000'/40,000' Nigeria Under contract

VALARIS DS-11 Drillship 2013 Dynamically Positioned 12,000'/40,000' Spain Preservation stacked (1)

VALARIS DS-12 Drillship 2013 Dynamically Positioned 12,000'/40,000' Angola Under contract

VALARIS DS-13 Drillship Under construction Dynamically Positioned 12,000'/40,000' South Korea Option (2)

VALARIS DS-14 Drillship Under construction Dynamically Positioned 12,000'/40,000' South Korea Option (2)

VALARIS DS-15 Drillship 2014 Dynamically Positioned 12,000'/40,000' Mexico Under contract

VALARIS DS-16 Drillship 2014 Dynamically Positioned 12,000'/40,000' Spain Preservation stacked (1)

VALARIS DS-17 Drillship 2014 Dynamically Positioned 12,000'/40,000' Spain Preservation stacked (1)

VALARIS DS-18 Drillship 2015 Dynamically Positioned 12,000'/40,000' Gulf of Mexico Under contract

VALARIS 8503 Semisubmersible 2010 Dynamically Positioned 8,500'/37,500' Gulf of Mexico Preservation stacked (1)

VALARIS 8505 Semisubmersible 2012 Dynamically Positioned 8,500'/35,000' Gulf of Mexico Under contract

VALARIS 8506 Semisubmersible 2012 Dynamically Positioned 8,500'/35,000' Gulf of Mexico Preservation stacked (1)

VALARIS DPS-1 Semisubmersible 2012 F&G ExD Millennium 10,000'/35,000' Malaysia Available

VALARIS MS-1 Semisubmersible 2011 F&G ExD Millennium 8,200'/40,000 Australia Under contract

VALARIS JU-22 Jackup 1980/2011 MLT 116-C 313'/25,000' Saudi Arabia Leased to ARO drilling

VALARIS JU-36 Jackup 1981/2011 MLT 116-C 300'/25,000' Saudi Arabia Leased to ARO drilling

VALARIS JU-37 Jackup 1981/2011 MLT 116-C 300'/25,000' Saudi Arabia Leased to ARO drilling

VALARIS JU-54 Jackup 1982/2004 F&G L-780 MOD II-C 300'/25,000' Saudi Arabia Under contract

VALARIS JU-67 Jackup 1976/2005 MLT 84-CE 350'/30,000' Indonesia Under contract

VALARIS JU-72 Jackup 1981/2011 Hitachi K1025N 225'/25,000' United Kingdom Under contract

VALARIS JU-75 Jackup 1999 MLT Super 116-C 400'/30,000' Gulf of Mexico Preservation stacked (1)

VALARIS JU-76 Jackup 2000 MLT Super 116-C 350'/30,000' Saudi Arabia Under contract

VALARIS JU-92 Jackup 1982/2003 MLT 116-C 210'/25,000' United Kingdom Under contract

VALARIS JU-100 Jackup 1987/2009 MLT 150-88-C 328'/25,000' Denmark Preservation stacked (1)

VALARIS JU-101 Jackup 2000/2010 KFELS MOD V-A 400'/30,000' United Kingdom Preservation stacked (1)

VALARIS JU-102 Jackup 2002 KFELS MOD V-A 400'/30,000' Gulf of Mexico Under contract

VALARIS JU-104 Jackup 2002/2011 KFELS MOD V-B 400'/30,000' UAE Preservation stacked (1)

VALARIS JU-106 Jackup 2005 KFELS MOD V-B 400'/30,000' Indonesia Under contract

VALARIS JU-107 Jackup 2006 KFELS MOD V-B 400'/30,000' Australia Under contract

VALARIS JU-108 Jackup 2007/2009 KFELS MOD V-B 400'/30,000' Saudi Arabia Under contract

VALARIS JU-109 Jackup 2008 KFELS MOD V-Super B 350'/35,000' Namibia Preservation stacked (1)

Rig Name Rig Type Year Built/

Rebuilt Design Maximum

Drilling Depth Location Status

VALARIS JU-110 Jackup 2015 KFELS MOD V-B 400'/35,000' Qatar Under contract

VALARIS JU-111 Jackup 2003 KFELS MOD V Enhanced B-Class 400'/36,000' Malta Preservation stacked (1)

VALARIS JU-113 Jackup 2012 Baker Marine Pacific Class 400 400'/30,000' Philippines Preservation stacked (1)

VALARIS JU-114 Jackup 2012 Baker Marine Pacific Class 400 400'/30,000' Philippines Preservation stacked (1)

VALARIS JU-115 Jackup 2013 Baker Marine Pacific Class 400 400'/30,000' Thailand Under contract

VALARIS JU-116 Jackup 2008/2018 LT 240- C 375'/35,000' Saudi Arabia Leased to ARO drilling

VALARIS JU-117 Jackup 2009 LT 240- C 350'/35,000' Gulf of Mexico Available

VALARIS JU-118 Jackup 2012 LT 240- C 350'/35,000 Mexico Under contract

VALARIS JU-120 Jackup 2013 KFELS Super A 400'/40,000' United Kingdom Under contract

VALARIS JU-121 Jackup 2013 KFELS Super A 400'/40,000' United Kingdom Under contract

VALARIS JU-122 Jackup 2013 KFELS Super A 400'/40,000' United Kingdom Under contract

VALARIS JU-123 Jackup 2016 KFELS Super A 400'/40,000' United Kingdom Under contract

VALARIS JU-140 Jackup 2016 LT Super 116E 340'/30,000' Saudi Arabia Under contract

VALARIS JU-141 Jackup 2016 LT Super 116E 340'/30,000' Saudi Arabia Under contract

VALARIS JU-142 Jackup 2008 LT Super 116-E 350'/36,000' Malta Preservation stacked (1)

VALARIS JU-143 Jackup 2010/2018 LT EXL Super 116-E 350'/35,000' Saudi Arabia Leased to ARO drilling

VALARIS JU-144 Jackup 2010 LT Super 116-E 350'/35,000' Mexico Under contract

VALARIS JU-145 Jackup 2010 LT Super 116-E 350'/35,000' Gulf of Mexico Preservation stacked (1)

VALARIS JU-146 Jackup 2011/2018 LT EXL Super 116-E 320'/35,000' Saudi Arabia Leased to ARO drilling

VALARIS JU-147 Jackup 2012/2019 LT Super 116-E 350'/30,000' Saudi Arabia Leased to ARO drilling

VALARIS JU-148 Jackup 2013/2019 LT Super 116-E 350'/30,000' Saudi Arabia Leased to ARO drilling

VALARIS JU-247 Jackup 1998 LT Super Gorilla 400'/35,000' United Kingdom Available

VALARIS JU-248 Jackup 2001/2014 LT Super Gorilla 400'/35,000' United Kingdom Under contract

VALARIS JU-249 Jackup 2001 LT Super Gorilla 400'/35,000' United Kingdom Preservation stacked (1)

VALARIS JU-250 Jackup 2003 LT Super Gorilla XL 550'/35,000' Saudi Arabia Leased to ARO drilling

VALARIS JU-290 Jackup 2011 KEFLS N Class 435'/35,000' Norway Under contract

VALARIS JU-291 Jackup 2011 KEFLS N Class 400'/35,000' Norway Under contract

VALARIS JU-292 Jackup 2011 KEFLS N Class 400'/35,000' Norway Under contract

(1) Prior to stacking, upfront steps are taken to preserve the rig.

This may include a quayside power source to dehumidify key equipment and/or provide electric current to the hull to prevent corrosion.

Also, certain

equipment may be removed from the rig for storage in a temperature-controlled environment.

Also, certain equipment may be removed from the rig for storage in a temperature-controlled environment.

While stacked, large equipment that remains on the rig is periodically inspected and maintained by Valaris personnel.

These steps are designed to reduce time and lower cost to reactivate the rig when market conditions improve.

Rig is currently under construction and is not contracted.

(2) The Amended RSA provides that on or before the effective date of the reorganization, the construction contracts for these rigs shall be rejected under Section 365 of the Bankruptcy Code, unless otherwise agreed between the shipyard and the Company with the consent of required Consenting Noteholders.

If rejected, it is contemplated that we would have to pay an amount equal to the liquidation recovery, which is the amount the contract counterparty would be entitled to receive or retain if the applicable Company entity was liquidated under chapter 7 of the Bankruptcy Code.

Prior to December 31, 2020, a Stipulation was filed with the Bankruptcy Court which included an Assumption Term Sheet stating amended terms of these construction agreements.

Following further negotiations, we entered into amended agreements with the shipyard on February 26, 2021 that become effective upon our emergence from bankruptcy.

The amendments provide for, among other things, an option construct whereby the Company has the right, but not the obligation, to take delivery of either or both rigs on or before December 31, 2023.

Under the amended agreements, the purchase price for the rigs are estimated to be approximately $119.1 million for the VALARIS DS-13 and $218.3 million for the VALARIS DS-14, assuming a December 31, 2023 delivery date.

Delivery can be requested any time prior to December 31, 2023 with a downward purchase price adjustment based on predetermined terms.

If the Company elects not to purchase the rigs, the Company has no further obligations to the shipyard.

The amended agreements remove any Company guarantee.

The equipment on our drilling rigs includes engines, draw works, derricks, pumps to circulate drilling fluid, well control systems, drill string and related equipment.

6 unchanged sentences

Although drillships are most often used for deepwater drilling and exploratory well drilling, drillships can also be used as a platform to carry out well maintenance or completion work such as casing and tubing installation or subsea tree installations.

Semisubmersibles are MODUs with pontoons and columns that are partially submerged at the drilling location to provide added stability during drilling operations.

Semisubmersibles are drilling rigs with pontoons and columns that are partially submerged at the drilling location to provide added stability during drilling operations.

Semisubmersibles are held in a fixed location over the ocean floor either by being anchored to the sea bottom with mooring chains or dynamically positioned by computer-controlled propellers or "thrusters" similar to that used by our drillships.

2 unchanged sentences

Dynamically positioned semisubmersibles generally are outfitted for drilling in deeper water depths and are well-suited for deepwater development and exploratory well drilling.

Further, we have three hybrid semisubmersibles, VALARIS 8503, VALARIS 8504 and VALARIS 8505, which leverage both moored and dynamically positioned configurations.

Further, we have two hybrid semisubmersibles, VALARIS 8503 and VALARIS 8505, which leverage both moored and dynamically positioned configurations.

This hybrid design provides multi-faceted drilling solutions to customers with both shallow water and deepwater requirements.

6 unchanged sentences

As of February 22, 2021, we owned all rigs in our fleet.

We also manage the drilling operations for two rigs owned by third-parties.

We lease our executive offices in London, England in addition to office space in Houston, Aberdeen, Abu Dhabi, Australia, Dubai, Indonesia, Malaysia, Malta, Mexico, Nigeria, The Netherlands, Saudi Arabia, Singapore, Thailand, Vietnam and Qatar.

We own offices and other facilities in Louisiana, Angola, Australia and Brazil.

We also manage the drilling operations for two platform rigs owned by a third-party.

We lease our executive offices in London, England in addition to office space in Houston, Aberdeen, Indonesia, Malaysia, Mexico, Brazil, Trinidad, Nigeria, The Netherlands, Saudi Arabia, Thailand, and Norway.

We own offices and other facilities in Louisiana, Angola, Australia, Aberdeen and Brazil.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties