Pemex takes two Borr Drilling jack-ups on long-term contracts

Jack-up rig contractor Borr Drilling has secured offshore drilling contracts with oil company Pemex, which will see two new build jack-ups deployed in Mexico.

Borr, in partnership with OPEX Perforadora, will deliver a total of 9 offshore development wells to Pemex under an integrated services model.

The scope of services will include the deployment of two of the Borr Drilling’s premium new build jack-ups, the  “Grid” and “Gersemi”, for a period of 18 months each.

The operations are expected to begin in mid-2019. Borr did not disclose the dayrates for the rigs. Bassoe Offshore initially estimated the dayrates to be around $90.000, but then upgraded the estimate to $100.000 per rig.

“Further, under this project, Borr will leverage on its strategic collaboration with our partner and main shareholder, Schlumberger, to provide comprehensive oilfield services and deliver an end-to-end well solution to our customer,”  Borr Drilling said.

The contract follows reports earlier in March when Borr said it was in advanced talks with undisclosed operators for multi-year contracts for four newbuild rigs – Grid, Gersemi, Saga, and Skald, all warm-stacked in Singapore.

The offshore drilling company, which owns a fleet of 36 offshore drilling rigs,  recently posted the 4Q 2018 net loss of $110.7 million down from a loss of $61,7 million in the corresponding quarter of 2017. Net loss in the third quarter of 2018 was $39 million.

On average, 8.6 rigs were operating during the fourth quarter of 2018 generating operating revenues of US$53.5 million compared to operating revenues of US$0.1 million in the fourth quarter of 2017 where only one rig had started operations just before the year-end.

Borr Drilling said in February it would, based on current contracts, be cash-flow positive from the end of Q2, 2019. The company has labeled the contracting environment as positive. In its quarterly results report Borr said it was expected that Mexico’s Pemex would award around 15 jack-up contracts in 2019 with durations of 2 years each.

Worth noting, this is not the first deal in Mexico for Borr this year. Borr Drilling in January said it had won one new contract for its Odin jack-up drilling rig in Mexico, with the contract starting in March, and ending in November 2019.

At the time, Borr did not say who the client was, but in a subsequently released fleet status report, it was revealed that the client for the KFELS Super B Bigfoot Class rig, capable of operating in water depths of 350 ft, was PanAmerican oil company.

Also, for those seeking offshore work, Borr, according to the listing on its website available as of the time of writing, still seeks workers for the Odin, and is looking for Toolpushers, Drillers, Assistant Drillers, Derrickmen, Barge Engineers, Crane Operators, etc… The positions are for Mexican nationals only.

Take note that Borr last month warned that unauthorized individuals in Mexico were presenting themselves as Borr Drilling representatives – promising job opportunities in the company’s name.

“Borr Drilling does not make unsolicited offers of employment. Also note that Borr Drilling, and the organizations that recruit on our behalf, will not ask for payments from applicants at any point in the recruitment process. Candidates in Mexico will only be contacted by Borr Drilling or Comive (organization authorized to recruit on our behalf in Mexico).”

Borr has advised those interested in job opportunities to go the company’s website directly.