What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2022-02-22 compared with 2021-03-02 · 62 added, 65 removed, 43 unchanged (75% of the section changed)

2 unchanged sentences

Drilling Depth

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

VALARIS DS-4 Drillship 2010 Dynamically Positioned 12,000'/40,000' Spain Under reactivation (3)

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-8 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-9 Drillship 2015 Dynamically Positioned 12,000'/40,000' Spain Under reactivation (3)

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

VALARIS DS-11 Drillship 2013 Dynamically Positioned 12,000'/40,000' Spain Preservation stacked (1)(4)

2 unchanged sentences

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-15 Drillship 2014 Dynamically Positioned 12,000'/40,000' Brazil Under contract

VALARIS DS-16 Drillship 2014 Dynamically Positioned 12,000'/40,000' Gulf of Mexico Under reactivation (3)

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 DPS-1 Semisubmersible 2012 Dynamically Positioned 10,000'/35,000' Australia Under contract

VALARIS DPS-3 Semisubmersible 2010 Dynamically Positioned 8,500'/37,500' Gulf of Mexico Preservation stacked (1)

VALARIS DPS-5 Semisubmersible 2012 Dynamically Positioned 8,500'/35,000' Gulf of Mexico Under contract

VALARIS DPS-6 Semisubmersible 2012 Dynamically Positioned 8,500'/35,000' Gulf of Mexico Preservation stacked (1)

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)

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

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

VALARIS 67 Jackup 1976/2005 MLT 84-CE 350'/30,000' Indonesia Preservation stacked (1)

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

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

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

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

VALARIS 102 Jackup 2002 KFELS MOD V-A 400'/30,000' Gulf of Mexico Preservation stacked (1)

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

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

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

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

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

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

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

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

Rig Name Rig Type Year Built/

1 unchanged sentence

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

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

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

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

VALARIS 117 Jackup 2009 LT 240- C 350'/35,000' Mexico Under contract

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

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

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

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

VALARIS 123 Jackup 2016 KFELS Super A 400'/40,000' Netherlands Under contract

VALARIS 140 Jackup 2016 LT Super 116E 340'/30,000' Saudi Arabia Leased to ARO drilling

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

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

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

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

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

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

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

VALARIS 247 Jackup 1998 LT Super Gorilla 400'/35,000' United Kingdom Under contract

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

VALARIS 249 Jackup 2001 LT Super Gorilla 400'/35,000' New Zealand Under contract

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

VALARIS Viking Jackup 2011 KEFLS N Class 435'/35,000' Norway Under contract

VALARIS Stavanger Jackup 2011 KEFLS N Class 400'/35,000' Norway Under contract

VALARIS Norway Jackup 2011 KEFLS N Class 400'/35,000' United Kingdom Under contract

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

3 unchanged sentences

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

(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.

(2) Prior to our chapter 11 filing, we had contractual commitments for the construction of VALARIS DS-13 and VALARIS DS-14.

On February 26, 2021, we entered into amended agreements with the shipyard that became 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.

Under the amended agreements, the purchase price for the rigs is 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 amended agreements removed any parent company guarantee.

(3) Rig being reactivated for a firm contract.

(4) Rig preservation stacked but has a firm contract that commences in July 2024.

In February 2022, the customer decided not to sanction and therefore withdraw from the project associated with this contract.

As of the date hereof, the customer has not terminated the contract, but may do so upon the payment of an early termination fee should the project not receive a final investment decision (FID).

The project has not received FID.

We are in discussions with the customer and its partner on the project to determine next steps.

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

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

Further, we have two hybrid semisubmersibles, VALARIS DPS-3 and VALARIS DPS-5, 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.

3 unchanged sentences

The jackup hull supports the drilling equipment, jacking system, crew quarters, storage and loading facilities, helicopter landing pad and related equipment and supplies.

Over the life of a typical rig, many of the major systems are replaced due to normal wear and tear or technological advancements in drilling equipment.

We believe all our rigs are in good condition.

As of February 21, 2022, we owned all rigs in our fleet.

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.

We lease office space in the UK (London & Aberdeen), the USA (Houston), Australia, Indonesia, Mexico, Brazil, Nigeria, The Netherlands, UAE (Dubai), Saudi Arabia, Thailand, and Norway.

We own offices and other facilities in Louisiana, Angola, 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