Borr Drilling, one of the youngest drilling companies in the offshore industry, on Tuesday said it had secured six drilling contracts in the past few months.
In its quarterly results presentation, the company was bullish on the future contracting activity, especially for the premium jack-up units, expecting more work and increased dayrates. Read all about that here.
Apart from the positive outlook, which Borr acknowledged might be slowed down by the current drop in oil prices, the 2016-established company shared news on the new contracts it managed to snap up during the third quarter and post the reporting period (September 30).
In its quarterly update, the company said it had managed to convert previously announced letters of intent into firm contracts.
While not disclosing the dayrates, Borr Drilling did share the names of the clients and the lengths of the contracts secured for its jack-ups.
U.S. oil major ExxonMobil hired the company’s two premium jack-ups Gerd and Groa newbuilds, taking each rig on a 24-month contract. Exxon will use the rigs for operations in Nigeria.
Furthermore, First E&P hired the recently delivered Natt jack-up for work in Nigeria. The contract is for 24 for months.
Also, Spirit Energy took the Ran jack-up on an 11-month term for drilling in the UK, and Kris Energy is already drilling using the Mist jack-up in Thailand, the contract being 3-4 months long.
Borr has also shared that the Norve jack-up, which recently completed drilling in Gabon, has won two contracts. The first is a 10 month deal with an undisclosed client, and on top of this, RoyalGet in E. Guinea has hired Norve for 2 months too. While it was not clear from Borr’s presentation when the contracts would begin, Norwegian rig brokers Bassoe Offshore show the following:
Also worth noting, on the of back what Borr considers favorable market conditions, the company in October decided to activate a further four newbuilds, bringing the total number of newbuilds being activated to seven. The company expects to find contracts for the four rigs within the next six months.
Of these seven rigs, five are from PPL Shipyard and two from Keppel FELS. Three rigs remain warm stacked at PPL Shipyard.
Offshore Energy Today Staff