Borr Drilling announced it has signed a definitive agreement to acquire five high-specification jack-up rigs valued at $287 million. The transaction will be executed through a 50/50 joint venture with a strategic partner experienced in drilling in Mexico.
Details of the offshore rig acquisition
The transaction includes the addition of two Friede & Goldman JU-2000E rigs and three LeTourneau Super 116-C units, which are already operating in Mexico. Likewise, the acquisition is carried out through the purchase of the asset-owning entities, which simplifies the operational and contractual transfer.
Regarding financing, the agreement includes a non-recourse vendor loan of $237 million. In addition, each partner will contribute $25 million in cash at closing.
The loan will have a 2.5-year term and will be secured by liens on the rigs themselves. This allows Borr Drilling to optimize its initial investment and maintain financial flexibility.
Impact of the transaction on the industry
This acquisition is also part of a broader process within the sector, where some companies are reshaping their asset portfolios. In this case, the sale of these rigs reflects other players exiting the jack-up business.
As a result, Borr Drilling strengthens its competitive positioning in the offshore market both in Mexico and internationally.
Source: Borr Drilling