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(WO) — Valaris Ltd. has exercised its options and taken delivery of newbuild drillships VALARIS DS-13 and DS-14 for an aggregate purchase price of approximately $337 million.

“We are delighted to add these two rigs, the highest specification drillships remaining at the South Korean shipyards, to our fleet,” Anton Dibowitz, president and CEO, said. “These additions increase our drillship fleet to 13 rigs, reinforcing its position as one of the most technically capable in the industry.”

VALARIS DS-13 and DS-14 will be mobilized from South Korea to Las Palmas, Spain, where the rigs will be stacked until they are contracted for work. The purchase of the rigs is expected to increase the Company’s fourth quarter 2023 capital expenditures by approximately $355 million, representing the purchase price for the rigs and costs associated with preparing the rigs to mobilize from South Korea to Las Palmas. In addition, the Company anticipates 2024 capital expenditures of approximately $35 million primarily related to mobilization costs.

“Following the successful contracting of six of our stacked drillships since mid-2021, the purchase of VALARIS DS-13 and DS-14 increases our operating leverage to the attractive ultra-deepwater floater market,” Dibowitz added. “Based on our positive market outlook, growing future demand and strong customer interest in these rigs, we believe that the purchase of these high specification drillships at compelling prices will generate attractive returns.”