Borr Drilling’s 22-strong rig fleet booked: Three jack-ups pick up gigs in Brazil, Malaysia, and Gabon

UK-headquartered offshore drilling contractor Borr Drilling has won a series of new contracts, extensions, and potential assignments for three premium jack-up rigs, covering 1,779 days and bringing $332 million in contract revenue, including mobilization and demobilization compensation. Thanks to these deals, all 22 rigs in the firm’s fleet have work commitments.

The Arabia I jack-up rig, which had its work scope suspended earlier this year in Saudi Arabia, has secured a four-year contract in Brazil, with a four-year unpriced option. This assignment is expected to begin in Q1 2025 in cooperation with an experienced local partner for Petrobras. 

The 2020-built Arabia I jack-up rig is of Keppel FELS B Class design and can accommodate 150 people. With a maximum drilling depth of 30,000 ft, the rig can work in water depths of 400 ft. 

The Gunnlod jack-up rig, which finished operations with ROC Oil in Malaysia and started operations with an undisclosed customer in Southeast Asia in direct continuation in early May 2024, has received a binding letter of award (LoA) from an operator in Malaysia. 

The award in Southeast Asia covers a firm scope of seven wells, with an anticipated duration of 210 days, and is expected to commence in November 2024. The 2018-built Gunnlod jack-up rig, which is of PPL Pacific Class 400 design, can accommodate 150 people. With the ability to operate in water depths of 400 ft, the rig’s maximum drilling depth is 30,000 ft.

A 109-day extension has been secured for the Norve jack-up rig with BW Energy in Gabon, Africa. As a result, the additional scope is expected to keep the rig busy until February 2025 when it will kick off its subsequent contract with Marathon Oil in Equatorial Guinea.

The 2011-built Norve jack-up rig, constructed at the PPL shipyard in Singapore, can operate in water depths of up to 400 ft. With a maximum drilling depth of 30,000 ft, the rig is of PPL Pacific Class 400 design and can accommodate 150 people.

Bruno Morand, Borr Drilling’s Chief Commercial Officer, 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 $644m in contract value, implying an average equivalent day rate of approximately $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.”

In addition, the rig owner confirmed the award of 180 days firm plus 180 days option commitment with Eni in Congo for the Gerd jack-up rig, which is expected to start in October 2024. The rig is currently operating in the UAE and will begin mobilization to West Africa in September immediately following the completion of its current contract.

As the top ten drilling contractors continue to dominate the offshore drilling market, Westwood recently predicted that Latin America and West Africa would likely add more floaters, however, the Middle East was expected to remain the biggest driver of jack-up demand, despite the Saudi Aramco suspensions. 

As Noble and Diamond Offshore, two of the world’s top five floating rig contractors, are pursuing a business combination, this raises the possibility of more such market consolidation moves being made.