| | | | | | | | | | | | | | |
| | | Valaris Limited
Fleet Status Report
October 27, 2021 | |
| | |
| New Contracts and Extensions, Rig Sales and Other Updates Since Last Fleet Status Report |
Floaters •VALARIS DS-9 awarded a two-year contract with ExxonMobil offshore Angola. The contract is expected to commence in June 2022. •VALARIS DS-4 awarded a contract with Petrobras offshore Brazil. The contract is for a minimum term of 548 days and is expected to commence by early second quarter 2022. •VALARIS DS-10 awarded two 1-well contracts with Shell offshore Namibia and Sao Tome and Principe, respectively. The first of these two contracts is expected to commence in November 2021. The Sao Tome and Principe contract will follow on directly from the Namibia contract. The contracts have an estimated duration of 60 days each. •VALARIS MS-1 awarded a four-well P&A contract with Eni offshore Australia. The contract is expected to commence in November 2021 with an estimated duration of 90 days. Jackups •VALARIS 36 bareboat charter agreement with ARO Drilling extended by 211 days from September 2021 to March 2022. ARO Drilling's contract with Saudi Aramco has been extended for the same period. •VALARIS 123 awarded a contract with TAQA offshore the Netherlands. The contract is expected to commence in November 2021 with an estimated minimum duration of 60 days. •VALARIS 123 awarded a one-well contract with Cairn Energy in the UK North Sea. The contract is expected to commence in the second quarter of 2022 with an estimated duration of 72 days. •VALARIS 107 awarded a one-well contract with Carnarvon Petroleum offshore Timor-Leste. The contract is expected to commence in November 2021 with an estimated duration of 30 days. •VALARIS 107 awarded a two-well contract with Vermilion Oil & Gas offshore Australia. The contract is expected to commence in April 2022 with an estimated duration of 60 days. •VALARIS 144 awarded a 30-day contract with an undisclosed operator in the U.S. Gulf of Mexico. The contract is expected to commence late in the fourth quarter of 2021 or early in the first quarter of 2022. •VALARIS Norway awarded a contract for accommodation work with Harbour Energy in the UK North Sea. The contract is expected to commence in November 2021. Rig Sales •VALARIS 22 and 100 have been sold and retired from the offshore drilling fleet. •VALARIS 142 has been sold to an operator and can only be utilized on specific assets. Other •VALARIS 8503, 8505 and 8506 have been renamed VALARIS DPS-3, DPS-5 and DPS-6, respectively, in the Fleet Status Report. •VALARIS JU-290, JU-291 and JU-292 have been renamed VALARIS Viking, Stavanger and Norway, respectively, in the Fleet Status Report. •VALARIS JU-250 has been renamed VALARIS 250 in the Fleet Status Report. This naming convention applies to all Valaris jackups, except for VALARIS Viking, Stavanger and Norway.
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New Disclosure: bolded text signifies contracts and extensions that have not been previously disclosed
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| | | Valaris Limited
Fleet Status Report
October 27, 2021 | |
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Contract Backlog(1) (2) ($ millions) | 2021 | 2022 | 2023 | 2024+ | Total | | Contracted Days(1) (2) | 2021 | 2022 | 2023 | 2024+ |
| Drillships | $ | 46.5 | | $ | 398.6 | | $ | 306.2 | | $ | 587.3 | | $ | 1,338.6 | | | Drillships | 239 | | 1,885 | | 1,369 | | 1,917 | |
| Semisubmersibles | 18.7 | | 111.8 | | 132.8 | | 14.6 | | 277.9 | | | Semisubmersibles | 126 | | 569 | | 602 | | 65 | |
| Floaters | $ | 65.2 | | $ | 510.4 | | $ | 439.0 | | $ | 601.9 | | $ | 1,616.5 | | | Floaters | 365 | | 2,454 | | 1,971 | | 1,982 | |
| | | | | | | | | | | |
| HD - Ultra-Harsh & Harsh | $ | 52.5 | | $ | 213.9 | | $ | 41.2 | | $ | — | | $ | 307.6 | | | HD - Ultra-Harsh & Harsh | 533 | | 1,993 | | 435 | | — | |
| HD & SD - Modern | 42.0 | | 158.1 | | 53.9 | | 20.5 | | 274.5 | | | HD & SD - Modern | 581 | | 2,202 | | 708 | | 304 | |
| SD - Legacy | 13.2 | | 68.7 | | 3.6 | | — | | 85.5 | | | SD - Legacy | 195 | | 980 | | 55 | | — | |
| Jackups | $ | 107.7 | | $ | 440.7 | | $ | 98.7 | | $ | 20.5 | | $ | 667.6 | | | Jackups | 1,309 | | 5,175 | | 1,198 | | 304 | |
| | | | | | | | | | | |
Other(3) | $ | 22.8 | | $ | 11.1 | | $ | — | | $ | — | | $ | 33.9 | | | Other(3) | 573 | | 678 | | — | | — | |
| | | | | | | | | | | |
| Total | $ | 195.7 | | $ | 962.2 | | $ | 537.7 | | $ | 622.4 | | $ | 2,318.0 | | | Total | 2,247 | | 8,307 | | 3,169 | | 2,286 | |
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ARO Drilling(4) | | | | | | | Average Day Rates(1) (2) | 2021 | 2022 | 2023 | 2024+ |
| Owned Rigs | $ | 46.3 | | $ | 173.6 | | $ | 173.6 | | $ | 363.9 | | $ | 757.4 | | | Drillships | $ | 195,000 | | $ | 211,000 | | $ | 224,000 | | $ | 306,000 | |
| Leased Rigs | 40.6 | | 48.1 | | — | | — | | 88.7 | | | Semisubmersibles | 148,000 | | 196,000 | | 221,000 | | 225,000 | |
| Total | $ | 86.9 | | $ | 221.7 | | $ | 173.6 | | $ | 363.9 | | $ | 846.1 | | | Floaters | $ | 179,000 | | $ | 208,000 | | $ | 223,000 | | $ | 304,000 | |
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| Valaris 50% Share of ARO Owned Rigs | $ | 23.2 | | $ | 86.8 | | $ | 86.8 | | $ | 181.9 | | $ | 378.7 | | | HD - Ultra-Harsh & Harsh | $ | 98,000 | | $ | 107,000 | | $ | 95,000 | | $ | — | |
Adjusted Total(5) | $ | 218.9 | | $ | 1,049.0 | | $ | 624.5 | | $ | 804.3 | | $ | 2,696.7 | | | HD & SD - Modern | 72,000 | | 72,000 | | 76,000 | | 68,000 | |
| | | | | | | SD - Legacy | 68,000 | | 70,000 | | 65,000 | | — | |
(1) Contract backlog, contracted days and average day rates as of October 27, 2021. (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. Contract backlog includes drilling contracts subject to final investment decision (FID) and drilling contracts which grant the customer termination rights if FID is not received with respect to projects for which the drilling rig is contracted. 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 October 27, 2021. (5) Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO owned rigs. | | Jackups | $ | 82,000 | | $ | 85,000 | | $ | 82,000 | | $ | 68,000 | |
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| HD = Heavy Duty; SD = Standard Duty |
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| | | Valaris Limited
Fleet Status Report
October 27, 2021 | |
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| Asset Category / Rig | | Design | | Year Delivered | | Customer/
Status | | Location | | Contract Start Date | | Contract End Date(1) | | Comments |
| Drillships | | | | | | | | | | | | | | |
| VALARIS DS-18 | | GustoMSC P10000 | | 2015 | | Chevron
Chevron | | U.S. GOM
U.S. GOM | | Aug 20
Jan 22 | | Jan 22
Jan 25 | | |
VALARIS DS-16
| | GustoMSC P10000 | | 2014 | | Occidental | | U.S. GOM | | May 22 | | Apr 24 | | Rig currently in Spain being reactivated |
| VALARIS DS-15 | | GustoMSC P10000 | | 2014 | | TotalEnergies | | Brazil | | Jun 21 | | Aug 22 | | |
VALARIS DS-12
| | DSME 12000 | | 2014 | | TotalEnergies
BP
BP | | Ivory Coast
Angola
Mauritania / Senegal | | Jul 21 Sep 21 Feb 22 | | Aug 21 Jan 22 Nov 22 | | |
VALARIS DS-10
| | Samsung GF12000 | | 2017 | | TotalEnergies Shell Shell
Shell | | Nigeria Namibia Sao Tome & Principe Nigeria | | Jul 21 Nov 21 Feb 22
Apr 22
| | Nov 21 Jan 22 Apr 22
Oct 22 | | |
| Stacked | | | | | | | | | | | | |
| VALARIS DS-17 | | GustoMSC P10000 | | 2014 | | Stacked | | Spain | | | | | | |
| VALARIS DS-11 | | DSME 12000 | | 2013 | | TotalEnergies | | U.S. GOM | | Jul 24 | | Dec 27 | | Rig currently stacked in Spain. The contract contains early termination provisions should the project not receive a final investment decision (FID) by the customer |
VALARIS DS-9
| | Samsung GF12000 | | 2015 | | ExxonMobil | | Angola | | Jun 22 | | May 24 | | Rig currently stacked in Spain |
VALARIS DS-8
| | Samsung GF12000 | | 2015 | | Stacked | | UK | | | | | | |
VALARIS DS-7
| | Samsung 96K | | 2013 | | Stacked | | Spain | | | | | | |
| VALARIS DS-4 | | Samsung 96K | | 2010 | | Petrobras | | Brazil | | Apr 22 | | Oct 23 | | Rig currently in transit from UK to Spain where it will be reactivated |
Purchase Options(2) | | | | | | | | | | | | |
VALARIS DS-14
| | DSME 12000 | | | | Under Construction | | 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 | | | | Under Construction | | South Korea | | | | | | Option to take delivery by year-end 2023. Purchase price of approx. $119 million assuming a Dec 31, 2023 delivery |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| | | Valaris Limited
Fleet Status Report
October 27, 2021 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Asset Category / Rig | | Design | | Year Delivered | | Customer/
Status | | Location | | Contract Start Date | | Contract End Date(1) | | Comments |
| Semisubmersibles | | | | | | | | | | | | |
VALARIS DPS-5
| | ENSCO 8500 Series,
DP + Moored | | 2012 | | Lukoil
Eni | | Mexico
Mexico | | Jul 21
Oct 21 | | Oct 21
Dec 21 | | |
VALARIS DPS-1
| | F&G ExD Millennium, DP | | 2012 | | Woodside
Woodside | | Australia
Australia | | Mar 22
Jan 23 | | Jan 23
Mar 24 | | Rig currently warm stacked in Malaysia
The January 2023 contract is subject to final investment decision (FID) by the customer
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VALARIS MS-1
| | F&G ExD Millennium, Moored | | 2011 | | Santos Eni Santos Santos | | Australia Australia Australia Australia | | May 21 Nov 21 May 22 Jun 22 | | Oct 21 Feb 22 May 22 Aug 23 | | |
| Stacked | | |
VALARIS DPS-6
| | ENSCO 8500 Series, DP | | 2012 | | Stacked | | U.S. GOM | | | | | | |
VALARIS DPS-3
| | ENSCO 8500 Series,
DP + Moored | | 2010 | | Stacked | | U.S. GOM | | | | | | |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| | | Valaris Limited
Fleet Status Report
October 27, 2021 | |
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| Asset Category / Rig | | Design | | Year Delivered | | Customer/
Status | | Location | | Contract Start Date | | Contract End Date(1) | | Comments |
| Jackups | | | | | | | | | | | | | | |
Heavy Duty Ultra-Harsh Environment(3) | | |
| VALARIS Norway | | KFELS N Class | | 2011 | | ConocoPhillips Harbour Energy
| | Norway UK
| | Nov 19 Nov 21
| | Aug 21
Jan 22 | |
Accommodation work |
| VALARIS Stavanger | | KFELS N Class | | 2011 | | Equinor | | Norway | | Oct 19 | | May 22 | | |
| VALARIS Viking | | KFELS N Class | | 2010 | | Lundin
Spirit
Repsol | | Norway
Norway
Norway | | May 20 Oct 21 May 22 | | Oct 21 Nov 21 Oct 22 | |
Repsol contract could be performed by VALARIS Viking or VALARIS Stavanger |
| VALARIS 250 | | LT Super Gorilla XL | | 2003 | | Saudi Aramco | | Saudi Arabia | | Jun 18 | | Dec 21 | | Leased to ARO Drilling(4) |
| VALARIS 249 | | LT Super Gorilla | | 2002 | | OMV | | New Zealand | | Jan 22 | | Feb 23 | | Rig currently mobilizing to New Zealand |
| VALARIS 248 | | LT Super Gorilla | | 2000 | | Neptune | | UK | | Aug 20 | | Aug 22 | | |
| VALARIS 247 | | LT Super Gorilla | | 1998 | | DNO | | UK | | May 21 | | Aug 22 | | |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| | | Valaris Limited
Fleet Status Report
October 27, 2021 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Asset Category / Rig | | Design | | Year Delivered | | Customer/
Status | | Location | | Contract Start Date | | Contract End Date(1) | | Comments |
| Jackups | | | | | | | | | | | | | | |
Heavy Duty Harsh Environment(3) | | |
| VALARIS 123 | | KFELS Super A | | 2019 | | Harbour Energy TAQA Cairn Energy | | UK Netherlands UK | | Oct 20 Nov 21 Apr 22 | | Oct 21 Jan 22 Jun 22 | | |
VALARIS 122
| | KFELS Super A | | 2014 | | Shell | | UK | | Jan 20 | | May 22 | | |
| VALARIS 121 | | KFELS Super A | | 2013 | | Harbour Energy | | UK | | Jul 21 | | Jul 23 | | |
| VALARIS 120 | | KFELS Super A | | 2013 | | Harbour Energy | | UK | | Jul 17 | | Jul 23 | | |
| Stacked | | |
| VALARIS 102 | | KFELS MOD V-A | | 2002 | | Stacked | | U.S. GOM | | | | | | |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| | | Valaris Limited
Fleet Status Report
October 27, 2021 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Asset Category / Rig | | Design | | Year Delivered | | Customer/
Status | | Location | | Contract Start Date | | Contract End Date(1) | | Comments |
| Jackups | | | | | | | | | | | | | | |
Heavy Duty - Modern(3) | | |
| VALARIS 118 | | LT 240-C | | 2011 | | Fieldwood | | Mexico | | Mar 20 | | Mar 22 | | |
| VALARIS 117 | | LT 240-C | | 2009 | | Eni | | Mexico | | Oct 21 | | Oct 23 | | |
| VALARIS 116 | | LT 240-C | | 2008 | | Saudi Aramco | | Saudi Arabia | | Dec 18 | | Dec 21 | | Leased to ARO Drilling(4) |
| VALARIS 115 | | BM Pacific Class 400 | | 2013 | | Mubadala Petroleum
Mubadala Petroleum | | Thailand
Thailand | | Feb 21
Feb 22 | | Nov 21 Sep 22 | | |
| VALARIS 110 | | KFELS MOD V-B | | 2015 | | North Oil Company
North Oil Company | | Qatar
Qatar | | Sep 17
Oct 21 | | Sep 21
Oct 24 | | |
| VALARIS 108 | | KFELS MOD V-B | | 2007 | | Saudi Aramco | | Saudi Arabia | | Nov 18 | | Nov 22 | | |
| VALARIS 107 | | KFELS MOD V-B | | 2006 | | Jadestone Carnarvon Petroleum Vermilion Oil & Gas | | Australia Timor-Leste Australia | | Jun 21 Nov 21 Apr 22 | | Nov 21
Dec 21
Jun 22 | | |
| VALARIS 106 | | KFELS MOD V-B | | 2005 | | BP | | Indonesia | | Jan 18 | | Jan 23 | | |
| Stacked | | |
| VALARIS 114 | | BM Pacific Class 400 | | 2012 | | Stacked
| | Philippines | | | | | | |
| VALARIS 113 | | BM Pacific Class 400 | | 2012 | | Stacked | | Philippines | | | | | | |
| VALARIS 111 | | KFELS MOD V-B | | 2003 | | Stacked | | Croatia | | | | | | |
| VALARIS 109 | | KFELS MOD V-Super B | | 2008 | | Stacked | | Namibia | | | | | | |
| VALARIS 104 | | KFELS MOD V-B | | 2002 | | Stacked | | UAE | | | | | | |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| | | Valaris Limited
Fleet Status Report
October 27, 2021 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Asset Category / Rig | | Design | | Year Delivered | | Customer/
Status | | Location | | Contract Start Date | | Contract End Date(1) | | Comments |
| Jackups | | | | | | | | | | | | | | |
| Standard Duty - Modern | | |
| VALARIS 148 | | LT Super 116-E | | 2013 | | Saudi Aramco | | Saudi Arabia | | Nov 19 | | Nov 22 | | Leased to ARO Drilling(4) |
| VALARIS 147 | | LT Super 116-E | | 2013 | | Saudi Aramco | | Saudi Arabia | | Sep 19 | | Aug 22 | | Leased to ARO Drilling(4) |
| VALARIS 146 | | LT Super 116-E | | 2011 | | Saudi Aramco | | Saudi Arabia | | Sep 18 | | Dec 21 | | Leased to ARO Drilling(4) |
| VALARIS 144 | | LT Super 116-E | | 2010 | | Fieldwood W&T Offshore Undisclosed Operator | | Mexico U.S. GOM U.S. GOM | | May 20 Nov 21 Dec 21
| | Oct 21
Dec 21
Jan 22 | |
Contract transferred from VALARIS JU-117 |
| VALARIS 143 | | LT Super 116-E | | 2010 | | Saudi Aramco | | Saudi Arabia | | Oct 18 | | Dec 21 | | Leased to ARO Drilling(4). Contract between ARO Drilling and customer suspended from May 21 to Jul 21 for suspension and maintenance period, then returned to operating day rate in Aug 21 |
| VALARIS 141 | | LT Super 116-E | | 2016 | | Saudi Aramco | | Saudi Arabia | | Aug 18 | | Feb 22 | | |
| VALARIS 140 | | LT Super 116-E | | 2016 | | Saudi Aramco
| | Saudi Arabia
| | Jul 18
| | Dec 21
| | |
| VALARIS 76 | | LT Super 116-C | | 2000 | | Saudi Aramco | | Saudi Arabia | | Jan 15 | | Apr 23 | | Contract suspended from Sep 20 to Sep 21, then returned to operating day rate |
| Stacked | | |
| VALARIS 145 | | LT Super 116-E | | 2010 | | Stacked
| | U.S. GOM | | | | | | |
| VALARIS 75 | | LT Super 116-C | | 1999 | | Stacked | | U.S. GOM | | | | | | |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| | | Valaris Limited
Fleet Status Report
October 27, 2021 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Asset Category / Rig | | Design | | Year Delivered | | Customer/
Status | | Location | | Contract Start Date | | Contract End Date(1) | | Comments |
| Jackups | | | | | | | | | | | | | | |
| Standard Duty - Legacy | | |
| VALARIS 92 | | LT 116-C | | 1982 | | Harbour Energy | | UK | | Feb 17 | | Dec 22 | | |
| VALARIS 72 | | Hitachi K1025N | | 1981 | | Eni
| | UK
| | Jan 20
| | Jan 23 | | |
| VALARIS 54 | | F&G L-780 Mod II-C | | 1982 | | Saudi Aramco | | Saudi Arabia | | Sep 14 | | Sep 22 | | Contract suspended from Oct 21 to Dec 21, then expected to return to operating day rate until end of contract |
| VALARIS 36 | | LT 116-C | | 1981 | | Saudi Aramco | | Saudi Arabia | | Sep 18 | | Mar 22 | | Leased to ARO Drilling(4) |
| Stacked | | |
| VALARIS 67 | | LT 84-CE | | 1976 | | Stacked | | Indonesia | | | | | | |
| VALARIS 37 | | LT 116-C | | 1981 | | Stacked | | Bahrain | | | | | | Upon completion of its contract with ARO Drilling in Oct 21, the rig was returned to Valaris and stacked |
| Sold / Held for Sale |
| VALARIS 142 | | LT Super 116-E | | 2008 | | Sold | | | | | | | | |
| VALARIS 100 | | LT Gorilla | | 1987 | | Sold | | | | | | | | |
| VALARIS 22 | | LT 116-C | | 1980 | | Sold | | | | | | | | |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| | | Valaris Limited
Fleet Status Report
October 27, 2021 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Asset Category / Rig | | Design | | Customer/
Status | | Location | | Contract Start Date | | Contract End Date(1) | | Comments |
| Other | | | | | | | | | | | | |
| Drilling Management | | |
| Thunder Horse | | Deepwater Semisubmersible | | BP | | U.S. GOM | | Jan 17 | | Jan 22 | | |
| Mad Dog | | Deepwater Spar Drilling Rig | | BP | | U.S. GOM | | Jan 17 | | Jan 22 | | On a standby rate from Apr 20 to Oct 21, and then return to operating day rate until end of contract |
| ARO Drilling | | | | | | | | | | | | |
| Jackup Rigs Owned by ARO Drilling | | |
| ARO 2001 | | LT 116-C | | Saudi Aramco | | Saudi Arabia | | Oct 17 | | Jan 26 | | |
| ARO 2003 | | BM 200-H | | Saudi Aramco | | Saudi Arabia | | Feb 18 | | Feb 26 | | |
| ARO 3001 | | LT Tarzan 225-C | | Saudi Aramco | | Saudi Arabia | | Oct 17 | | Jan 26 | | |
| ARO 3002 | | LT Tarzan 225-C | | Saudi Aramco | | Saudi Arabia | | Oct 17 | | Jan 26 | | |
| ARO 3003 | | LT Tarzan 225-C | | Saudi Aramco | | Saudi Arabia | | Oct 18 | | Dec 21 | | |
| ARO 3004 | | LT Tarzan 225-C | | Saudi Aramco | | Saudi Arabia | | Oct 18 | | Dec 21 | | |
| ARO 4001 | | KFELS Super B | | Saudi Aramco | | Saudi Arabia | | Oct 17 | | Jan 26 | | |
| ARO 2005 | | LT 116-C | | Under Construction | | Saudi Arabia | | | | | | Delivery expected in 2022 |
| ARO 2006 | | LT 116-C | | Under Construction | | Saudi Arabia | | | | | | Delivery expected in 2022 |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
(1) Contract duration does not include any unexercised optional extensions. Contract end dates can vary based on how long it takes to complete the wells subject to the contract.
(2) Valaris has the right, but not the obligation, to take delivery of either or both rigs on or before December 31, 2023. Not included in Valaris' fleet count.
(3) Heavy duty jackups are well-suited for operations in tropical revolving storm areas.
(4) Rigs leased to ARO Drilling via bareboat charter agreements to fulfill contracts between ARO Drilling and Saudi Aramco.
| | | | | | | | | | | | | | |
| | | Valaris Limited
Fleet Status Report
October 27, 2021 | |
Additional Information Regarding this Fleet Status Report
Day Rate and Terms. The day rates reflected in this Fleet Status Report are stated in U.S. dollars and are the operating day rates charged to customers, which may include estimated contractual adjustments for changes in operating costs and/or reimbursable cost adjustments for ongoing expenses such as crew, catering, insurance and taxes. The day rates, however, do not include certain types of non-recurring revenues such as lump sum mobilization payments, revenues earned during mobilizations, revenues associated with contract preparation and other non-recurring reimbursable items such as mobilizations and capital enhancements, and the impact of the fair market value adjustments to previously acquired drilling contracts. Routine and non-routine downtime may reduce the actual revenues recognized during the contract term. Additionally, we sometimes negotiate special rates and/or day rate adjustments with customers that may reduce revenues recognized.
Forward Looking Statements. Statements contained in this Fleet Status Report that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “could,” “may,” “might,” “should,” “will” and similar words and specifically include statements involving future rig day rates including adjustments with the customer; future levels of offshore drilling activity; discussions with the customer; backlog; cost adjustments; utilization; estimated rig availability; expected work commitments and contracts; contract duration, status, terms and other contract commitments; letters of intent, letters of award or other correspondence indicating an award; rig enhancement projects; new rig commitments; the expected period of time and number of rigs that will be in a shipyard for repairs, maintenance, enhancement or construction; sale leaseback transactions; scheduled delivery dates for rigs; performance of our joint venture with Saudi Aramco; the timing of delivery, mobilization, contract commencement, relocation or other movement of rigs; and our intent to sell or scrap rigs. Such statements are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including the effects of the chapter 11 cases on the Company's business, relationships, comparability of our financial results, ability to access financing sources, the COVID-19 outbreak and global pandemic, the related public health measures implemented by governments worldwide, which may, among other things, impact our ability to staff rigs and rotate crews; cancellation, suspension, renegotiation or termination of drilling contracts and programs including drilling contracts which grant the customer termination rights if final investment decision (FID) is not received with respect to projects for which the drilling rig is contracted; potential additional asset impairments; our failure to satisfy our debt obligations; our ability to obtain financing, service our debt, fund negative cash flow and capital expenditures and pursue other business opportunities; adequacy of sources of liquidity for us and our customers; actions by regulatory authorities, rating agencies or other third parties; actions by our security holders; availability and terms of any financing; commodity price fluctuations, customer demand, new rig supply, downtime and other risks associated with offshore rig operations; severe weather or hurricanes; changes in worldwide rig supply and demand, competition and technology; future levels of offshore drilling activity; governmental action, civil unrest and political and economic 3 uncertainties; terrorism, piracy and military action; risks inherent to shipyard rig construction, repair, maintenance or enhancement; our ability to enter into, and the terms of, future drilling contracts; the cancellation of letters of intent or letters of award or any failure to execute definitive contracts following announcements of letters of intent, letters of award or other expected work commitments; the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; environmental or other liabilities, risks or losses; debt restrictions that may limit our liquidity and flexibility; and cybersecurity risks and threats. In particular, the unprecedented nature of the current economic downturn, pandemic, and industry decline may make it particularly difficult to identify risks or predict the degree to which identified risks will impact the Company's business and financial condition. In addition to the numerous factors described above, you should also carefully read and consider “Item 1A. Risk Factors” in Part I and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II of our most recent annual report on Form 10-K, as updated in our subsequent quarterly reports on Form 10-Q, which are available on the SEC’s website at www.sec.gov or on the Investor Relations section of our website at www.valaris.com. Each forward-looking statement contained herein speaks only as of the date of this Fleet Status Report, and we undertake no obligation to publicly update or revise any forward looking statements, except as required by law.
