Borr Drilling Inks $715M Deal For Five Jack-up Rigs In Mexico

Offshore driller Borr Drilling has won new three-year deals for five jack-up drilling rigs in Mexico.

Borr Drilling said on Thursday that it entered into new contracts for the company’s five premium jack-up rigs with OPEX Perforadora S.A. de C.V. and Perforadora Profesional Akal I S.A. de C.V., providers of integrated well services to Pemex.

According to the company, the contract was awarded to Borr Drilling’s joint venture company in Mexico – Perfomex. Borr Drilling added that the rigs in question were the Galar, Gersemi, Grid, Njord, and Odin.

The contracts are effective from October 20, 2022, and will maintain all five rigs contracted until December 31, 2025, for a combined contract value of $715 million. This value includes upfront cash payments of $33 million in total.

“Further, these agreements incorporate enhanced terms that are expected to improve the economic efficiency of the business,” the offshore driller said.

Borr Drilling provides the five rigs on a bareboat basis to the joint ventures with bareboat earnings equivalent to residual cash from the day rate earnings less payments of operating expenses and other fees in the joint ventures.

The company’s most recent fleet status report, all five rigs have been contracted with Pemex for years with the end date of their current contracts set for December 2022.

In recent company news, Borr sold one of its warm-stacked jack-up rigs and agreed with Singapore’s Keppel to accelerate deliveries of three rigs and defer two others.

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