Borr Drilling inks agreement to sell three jack-ups

Source: press release, 27 June 2022      

photo: Borr Drilling
photo: Borr Drilling

Borr Drilling Limited has signed a binding letter of intent with an undisclosed third party for the sale of 3 high-specification units under construction with Keppel FELS shipyard – namely Tivar, Huldra and Heidrun.

The sale transaction is subject to customary closing conditions and procedures and is expected conclude within 30 days. The transaction rigs are expected to be employed by the prospective owner in a captive market and represent limited competition to Borr Drilling’s fleet.

The total consideration for the transaction is USD 320 million, which will be used to pay the delivery instalments of the three rigs and eliminates the associated activation costs that would have applied in the future.

This transaction forms an integral part of the refinancing and optimisation of the Borr Drilling capital structure, which the company is working to complete as it significantly reduces the company’s capital commitments. The company continues to actively engage with its creditors with a view to completing its refinancing and expects to update the market further on the progress in the coming days.

Upon conclusion of the sale of the transaction rigs, the company’s fleet will be composed of 23 delivered rigs (of which 20 are currently contracted) and two rigs under construction with Keppel FELS. Borr Drilling confirms its ambition of having all 23 delivered rigs contracted by the end of 2022, benefiting from the fast-improving jack-up market.