Borr Drilling Limited recently announced the award of new oilfield contracts for three of its high-end jackup rigs: Arabia I, Gunnlod and Norve. These new agreements represent a total of 1,779 days of service and will generate revenues of $332 million, including mobilization and demobilization costs.
Borr Drilling expands in Brazil and Asia with new contracts
Additionally, the “Arabia I” project, which had paused operations in Saudi Arabia earlier this year, has been awarded a lucrative new contract in Brazil. This contract has a duration of four years, with an additional four-year option at an unfixed price and is expected to start in the first quarter of 2025, in collaboration with an experienced local partner from Petrobras.
In Southeast Asia, the “Gunnlod” platform has received a binding letter of award from an operator in Malaysia. This contract covers seven wells over a period of 210 days, with start-up scheduled for November 2024.
Borr’s continued growth in Africa
On the African continent, the “Norve” platform has been able to extend its stay in Gabon for an additional 109 days with BW Energy. This extension ensures the operability of the “Norve” until February 2025, when it will start its next contract with Marathon Oil in Equatorial Guinea.
In addition, Borr Drilling had previously announced a 180-day contract plus a 180-day extension option in Congo for ENI. The “Gerd” rig, currently active in the United Arab Emirates, will move to West Africa in September, just after the end of its current contract.
Borr reaches $644 million in oil contracts
Bruno Morand, commercial director of Borr Drillinghighlighted the importance of these new contracts, stating that they are evidence of the company’s ability to capture strategic commitments by leveraging its premium fleet and strong operational performance globally. To date, the company has secured 13 new contracts in the year, totaling a total contract value of $644 million. This sum represents an average daily rate of approximately US$185,000.
Morand also stressed that the new long-term contract in Brazil for “Arabia I” is a significant improvement over its previous contract, with an increase of more than 60% in the daily rate. Following these assignments, all rigs delivered by the company are fully committed.
Based on commitments already secured and ongoing negotiations, Morand expressed confidence that the new Vali project will be contracted and operational shortly after its delivery, scheduled for the end of this year.
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Source: Borrdrilling
Photo: Shutterstock
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