Valaris Ltd, the Bermuda-headquartered offshore drilling company, has agreed to sell its jack-up rig Valaris 247 to BW Energy for approximately $108 million in cash.

The sale is expected to close in the second half of the year, subject to standard closing conditions.

The rig, which is operating off the coast of Australia, will be restricted under the terms of the agreement to operating only on BW Energy-owned or affiliated properties for the remainder of its useful life.

Anton Dibowitz, the president and chief executive of Valaris, called the deal a “highly accretive, opportunistic transaction” for the company. “Upon closing, the sale proceeds will provide us with additional financial flexibility, including the return of capital to shareholders,” he stated.

The Valaris 247 is a 27-year-old jack-up drilling unit. Jack-up rigs are typically used for shallow-water oil and gas drilling operations.

Valaris Ltd operates a global fleet of drillships, semisubmersibles and jack-up rigs.