The world of offshore drilling is dynamic and highly competitive, with numerous companies vying for lucrative contracts to explore and extract oil and gas reserves. Borr Drilling, a leading offshore drilling contractor, has secured new contract commitments for three of its premium jack-up rigs, marking a significant milestone in the company’s pursuit of growth and expansion. Borr Drilling’s Contract Wins
- The Thor rig received a binding letter of award from Vietsovpetro in Vietnam, Southeast Asia.
- The Gerd rig secured a binding letter of award from Foxtrot in Ivory Coast, West Africa.
- The Norve rig received a letter of award from an undisclosed operator for a campaign with an expected duration of 11 months, set to begin in the second half of 2026.
These contract wins are expected to have a significant impact on Borr Drilling’s bottom line, with an estimated combined duration of 774 days and contract revenues of approximately $120 million, excluding mobilization and demobilization fees.
Thor Rig’s New Program
The Thor rig, one of Borr Drilling’s premium jack-up rigs, has received a binding letter of award from Vietsovpetro in Vietnam, Southeast Asia. This award covers a firm scope of three wells, with an anticipated duration of 75 days, and is expected to commence in April 2025. As a result, the rig’s previously announced program, originally set to begin in May, will now start in July, in direct continuation of this Vietsovpetro program. Consequently, the rig is now expected to remain under contract through September 2025.
Gerd Rig’s New Program in West Africa
The Gerd rig, another premium jack-up rig operated by Borr Drilling, has secured a binding letter of award from Foxtrot in Ivory Coast, West Africa. This award covers a one-year firm program, scheduled to begin in the late fourth quarter of 2025. This contract win is significant, as it demonstrates the Gerd rig’s versatility and capability to operate in diverse regions, including West Africa.
Norve Rig’s New Program
The Norve rig, a third premium jack-up rig operated by Borr Drilling, has received a letter of award from an undisclosed operator for a campaign with an expected duration of 11 months, set to begin in the second half of 2026. This contract win is subject to the customer’s Final Investment Decision (FID), anticipated in the second quarter of 2025.
Other Rigs in Borr Drilling’s Fleet
In addition to the three contract wins announced earlier, Borr Drilling has received re-mobilization notices for the rigs Galar, Grid, and Gersemi, which were previously suspended in Mexico. Furthermore, the start of long-term contracts for the rigs Arabia I and Vali has enabled the company to invoice approximately $48 million in lump-sum mobilization revenues.
Future Outlook
With the above developments, six of Borr Drilling’s rigs that were idle for part or the whole of the first quarter of 2025 are set to resume operations, laying the foundation for a significant improvement in utilization, revenue, and EBITDA starting in the second quarter of 2025 and beyond. As the company continues to expand its operations and increase its market share, it is likely to face increased competition in the future.
| Arabia I | $48 million |
| Vali | $30 million |
The company’s commitment to providing high-quality services and building strong relationships with its customers is evident in its continued expansion and growth. As the offshore drilling industry continues to evolve, Borr Drilling remains well-positioned to capitalize on new opportunities and deliver significant value to its stakeholders.
“With the above developments, six of our rigs that were idle for part or the whole of the first quarter of 2025 are set to resume operations, laying the foundation for a significant improvement in utilization, revenue and EBITDA starting in the second quarter 2025 and beyond,”
This statement highlights Borr Drilling’s focus on resuming operations and generating revenue, even in challenging market conditions. The company’s dedication to its customers and its commitment to providing high-quality services are essential in driving growth and expansion in the competitive offshore drilling industry.
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