Borr Drilling takes delivery of newbuild rig from Seatrium ahead of schedule

Singapore-headquartered provider of offshore, marine, and energy solutions Seatrium has delivered another newbuild jack-up rig earlier than expected to Borr Drilling, a UK-headquartered offshore drilling contractor. This handover of the final unit in a multi-rig series is said to have been completed almost a year before it was due.

While Borr Drilling initially hired Keppel FELS to build 11 jack-up rigs, once six were delivered, five remained on the list when the original deliveries were delayed first in June 2020 and then in January 2021, resulting in the deferral of the rigs’ scheduled delivery to 2023. These rigs were supposed to be delivered progressively with the first delivery in May 2023 and the final one in December 2023.

However, Keppel Offshore & Marine (Keppel O&M) signed an amended agreement with Borr Drilling to accelerate the delivery of three jack-ups between October 2022 and July 2023 to either the company or a third party to whom the firm intended to sell the rigs. Once the construction contracts for these three rigs were novated to ADNOC Drilling, the first of three rigs was delivered to the UAE player in November 2022, with the second following suit in August 2023.

After Seatrium emerged early in 2023, following the completion of the business combination of Sembcorp Marine and Keppel Offshore & Marine, Vali got delivered in August 2024, one year ahead of the planned delivery date, as the fourth out of the remaining five jack-up rigs the Singapore player was constructing for Borr Drilling.

With the delivery of the Var rig, which was built at its Pioneer Yard, the Singapore-based firm has now handed over the fifth and final newbuild B Class jack-up to the offshore drilling player. Seatrium claims that the early delivery highlights its consistent ability to execute major projects safely, on time, and within budget.

William Gu, Executive Vice President of Seatrium Energy (International), commented: “We are proud to announce the successful completion of Var, the fifth and final newbuild rig for Borr Drilling, delivered ahead of schedule, within budget and with a commendable safety record. This achievement underscores the effectiveness of Seatrium’s series-build strategy and reinforces our proven track record in delivering high-quality offshore solutions.

“Our One Seatrium Delivery Model enables us to integrate teams across all regions, optimise resources, and leverage advanced technologies, allowing us to provide exceptional offshore solutions with our proprietary designs.”

Designed to operate in water depths of up to 400 feet and drill to depths of up to 35,000 feet, the Var KFELS Super B Class jack-up rig can drill deep wells vertically and horizontally. Equipped with a fully automated high-capacity rack and pinion jacking system, the rig’s cantilever structure has a maximum combined load of 3,700 kips, with a capacity to accommodate full amenities for up to 150 persons.

Borr Drilling, which recently disclosed a backlog of $1.62 billion for Q3 2024, claims the global demand for offshore drilling services, including jack-up rigs, remains strong despite uncertainty.

The company’s combined backlog with its peers – Transocean, Noble Corporation, Valaris, and Odfjell Drilling –  amounted to $23.22 billion in the third quarter of 2024.