Valaris plc announced that ARO Drilling, its 50/50 joint venture with Saudi Aramco, has ordered two newbuild jackup rigs from International Maritime Industries. Upon delivery, each rig is expected to commence an eight-year contract with Saudi Aramco and operate at a day rate determined by a six-year EBITDA payback.

Following its initial eight-year contract, and subject to certain conditions, each rig will receive an additional eight-year contract, with the daily operating rate repriced every three years, and a preference for new contracts working for Saudi Aramco thereafter.

The total cost of each newbuild, with full compliance to the latest Saudi Aramco specifications, is approximately $175 million, of which 25% will be paid as an initial down payment by ARO Drilling from cash on hand and the balance will be provided by ARO Drilling on delivery of each rig. The first and second newbuild rigs are expected to be delivered in first quarter 2022 and second quarter 2022, respectively.

About Valaris

Valaris plc (NYSE: VAL) is the industry leader in offshore drilling services across all water depths and geographies. Operating a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles and modern shallow-water jackups, Valaris has experience operating in nearly every major offshore basin. With an unwavering commitment to safety and operational excellence, and a focus on technology and innovation, Valaris was rated first in total customer satisfaction in the latest independent survey by EnergyPoint Research - the ninth consecutive year that the Company has earned this distinction. Valaris plc is an English limited company (England No. 7023598) with its corporate headquarters located at 110 Cannon Street, London EC4N 6EU.

About Saudi Aramco

Saudi Aramco is a leading global integrated energy and chemicals company. We are driven by the core belief that energy is opportunity. From producing approximately one in every eight barrels of the world’s oil supply to developing new energy technologies, our global team is dedicated to creating impact in all that we do. We focus on making our resources more dependable, more sustainable and more useful. This helps promote stability and long-term growth around the world.