Borr Drilling Scoops $332M in Three Jack-Up Rig Contracts

Friday, July 26, 2024

Offshore drilling contractor Borr Drilling has secured contracts for three of its premium jack-up drilling rigs, which will be put to work in Brazil, Malaysia and Gabon.

These contract and extensions for Borr Drilling’s Arabia I, Gunnlod and Norve jack-ups cover a total of 1,779 days and $332 million in contract revenue, including mobilization and demobilization compensation.

The Arabia I, which had its work scope suspended earlier this year in Saudi Arabia, has secured a new long-term contract in Brazil.

The contract period is four years firm plus a four years unpriced option. This contract is expected to start in the first quarter of 2025 in cooperation with local partner for Petrobras.



In Southeast Asia, the Gunnlod has received a binding Letter of Award (LoA) from an operator in Malaysia. 

The award covers a firm scope of seven wells, with an anticipated duration of 210 days, and is expected to commence in November 2024.

 In Africa, the Norve jack-up has secured a 109 days extension with BW Energy in Gabon.

This extension will keep the Norve contracted until February 2025 when it will begin its subsequent contract with Marathon Oil in Equatorial Guinea.

"These new awards reinforce Borr Drilling's ability to secure strategic commitments by leveraging our premium fleet, strong operational performance, and global footprint. Year to date, the company has secured 13 new contracts contributing $644m in contract value, implying an average equivalent day rate of approximately $185,000.

“The new long-term award in Brazil for the Arabia I will be a vast improvement over its previous contract with a day-rate increase of over 60%.

“Following these awards, all our delivered rigs are committed. Based on already secured commitments and ongoing negotiations, we are confident that the new build Vali will be contracted and operating shortly after its delivery later this year,” said Bruno Morand, Chief Commercial Officer of Borr Drilling.

Additionally, the company previously announced the award of 180 days firm plus 180 days option commitment in Congo for Eni.

The Gerd will execute this program that is expected to commence in October 2024. The rig is currently operating in the UAE and will commence mobilization to West Africa in September immediately following the completion of its current contract.

Categories: Drilling Industry News Activity South America Asia Africa Oil and Gas

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