Borr Drilling Ltd has announced new contract commitments for three of its premium jack-up rigs and additional fleet updates.
Highlights
- Secured new awards for the rigs Thor, Gerd and Norve with an expected combined duration of 774 days and estimated contract revenues of approximately US$120 million, excluding mobilisation and demobilisation fees.
- Received re-mobilisation notices for the rigs Galar, Grid and Gersemi, which were previously suspended in Mexico.
- Commencement of long-term contracts for the rigs Arabia I and Vali enabling the Company to invoice approximately US$48 million in lump-sum mobilisation revenues.
With the above developments, six rigs that were idle for part or the whole of 1Q25 are set to resume operations, laying the foundation for a significant improvement in utilisation, revenue and EBITDA starting in 2Q25 and beyond.
Contracting updates
In Southeast Asia, the Thor has received a binding Letter of Award from Vietsovpetro in Vietnam. The award covers a firm scope of three wells, with an anticipated duration of 75 days, and is expected to commence in April 2025. Consequently, the rig’s previously announced program, originally set to begin in May will now commence in July, in direct continuation of this Vietsovpetro program. With these adjustments, the rig is now expected to remain under contract through September 2025.
In West Africa, the Gerd has secured a binding Letter of Award from Foxtrot in Ivory Coast for a one-year firm program, scheduled to begin in late 4Q25.
Additionally, in West Africa, the Norve has received a Letter of Award from an undisclosed operator for a campaign with an expected duration of 11 months, set to commence in the 2H26. The final contract remains subject to the customer’s Final Investment Decision (FID), anticipated in 2Q25.
Fleet developments
In Mexico, Borr Drilling has received a re-mobilisation request from its customer for the rigs Galar, Grid and Gersemi, with mobilisation to their next operating locations expected in mid-April 2025. Operations on these units are anticipated to resume shortly thereafter, within the 2Q25. These three rigs were previously suspended and will continue operations on Pemex assets under the same contractual terms. Notably, the Galar will be deployed in the Bacab-Lum field, which will be developed by an affiliate of Borr Drilling’s customer under a private investment structure.
Additionally, the rigs Arabia I and the newbuild Vali have started earning day rate revenues under their long-term contracts with Petrobras in Brazil and Mellitah Oil and Gas in Libya, respectively. In connection with the commencement of these contracts, the Company will invoice approximately US$48 million in lump-sum mobilisation revenues.
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