Borr Drilling announce contracting update
Borr Drilling has announced new contract commitments for three of its premium jack-up rigs, the ‘Arabia I’, the ‘Gunnlod’ and the ‘Norve’.
These commitments cover a total of 1779 days and US$332 million in contract revenue, including mobilisation and demobilisation 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 4 years firm plus a 4 years unpriced option. This contract is expected to commence in Q125 in cooperation with an experienced local partner for Petrobras.
In Southeast Asia, the ‘Gunnlod’ has received a binding Letter of Award 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’ has secured a 109 days extension with BW Energy in Gabon. This extension will keep the ‘Norve’ contracted until February 2025 when it will commence its subsequent contract with Marathon Oil in Equatorial Guinea.
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 programme that is expected to commence in October 2024. The rig is currently operating in the UAE and will commence mobilisation to West Africa in September immediately following the completion of its current contract.
Chief Commercial Officer, Bruno Morand, commented: “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 US$644m in contract value, implying an average equivalent day rate of approximately US$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.”
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Published: 29-07-2024
