Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

Offshore drilling contractor Borr Drilling has singed new contract commitments for four of its premium jack-up rigs, which are set for deployment in the Middle East, Southeast Asia and Mexico.

The new awards have a combined duration of approximately 1,300 days, including fixed priced options, and an estimated contract revenue of more than $129 million, according to Borr Drilling.

In the Middle East, the Arabia II jack-up rig, which is currently warm stacked, has secured a binding Letter of Award from an undisclosed customer. 

The contract will start in September 2025 and is anticipated to have a firm duration of 500 days, plus a 200-day unpriced option. It also includes an additional performance-based incentive that rewards superior performance which this modern and technically capable rig can deliver.

In Southeast Asia, the rigs Thor and Gunnlod have received a binding Letter of Award from an undisclosed customer.

The Thor will undertake a well-based program with an estimated duration of 240 days starting in October 2025, while the Gunnlod is set to begin a 100-day program in September 2025, following the completion of its current contract.

Both agreements include one fixed priced optional well, each estimated at 80 days.

In Mexico, the Odin jack-up rig received a notice of a 30-day temporary suspension from PEMEX effective early June.

Following this, alternative deployment options have been explored, and Borr Drilling secured a Letter of Intent from an independent oil company in Mexico for a 60-day accommodation program expected to start in July.

The agreement includes priced options for drilling works that could keep the rig contracted through the second quarter of 2026. Following the award, four of Borr Drilling’s seven rigs in Mexico are now committed to independent customers.

In line with Borr Drilling’s strategy to optimize near term fleet utilization, the new commitments are said to provide strengthened revenue visibility and increase the company’s contract coverage to 84%2 at an average day rate of $144,000 for 2025 and 45%2 at an average day rate of $141,000 for 2026.

So far in 2025, the company has secured 13 new commitments, equating to a total of 3,010 potential contract days and $366 million in potential contract revenues, including firm term and priced options.

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