Aramco suspends Valaris jackup drilling rig following capital investment reduction
(WO) – Valaris Limited announced that ARO Drilling (“ARO”), its joint venture in Saudi Arabia, received a notice of suspension from Aramco for one of its 19 contracted rigs, jackup VALARIS 143 (EXL I). The rig’s contract was previously scheduled to end in December 2024.
The suspension notice is for a period of up to twelve months, and ARO is in discussions with Aramco to determine the effective date of the suspension. During the suspension period, ARO will have the right to terminate the drilling contract with Aramco. Valaris leases VALARIS 143 (EXL I) to ARO under a bareboat charter agreement.
The jackup drilling rig suspension follows Aramco’s March announcement that the company plans to reduce capital investment by roughly $40 billion between 2024 and 2028 to maintain productive capacity at 12 MMbpd.
