Valaris debtors to get $118.09 million under rig insurance settlement

By Caroline Salls

Pittsburgh, Aug. 28 – Valaris plc requested court approval of an offshore drilling rig physical damage and loss-of-hire insurance settlement, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

The motion said while one of the Valaris debtors’ drilling rigs, the DS-8, was completing a scheduled move between two wells in March, a blowout preventer stack fell to the seabed, and the DS-8’s operations were suspended.

Valaris said the Ensco Intercontinental GmbH and Ensco Vistas Ltd. negotiated a settlement with the insurers before the bankruptcy filing.

Under the proposed settlement, the insurers will make a $118.09 million lump sum payment to the Ensco debtors in exchange for a mutual release of claims.

A hearing is scheduled for Sept. 17.

Valaris is a London-based offshore drilling company. The company filed bankruptcy on Aug. 19 under Chapter 11 case number 20-34114.

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