Borr Drilling to acquire five jack-up rigs from Paratus for $287m

Borr Drilling has signed definitive agreements to acquisition 5 jack-up rigs from Fontis Finance, a subsidiary of Paratus Energy Services, for $287m.

This acquisition volition beryllium conducted via BC Ventures, a caller 50:50 associated task (JV) incorporated betwixt subsidiaries of Borr Drilling and Proyectos Globales de Energía y Servicios CME (CME), Borr's longstanding good operation spouse successful Mexico.

The JV volition get ownership of 2 Friede & Goldman JU-2000E plan rigs and 3 LeTourneau Super 116-C plan rigs, which are each presently situated successful Mexico.

The transaction is structured arsenic 2 interdependent deals, 1 of them being CME’s acquisition of Fontis’ Mexican operations for cash. The 2nd woody volition spot CME and Borr get Fontis’ Singapore-based rig-owning entities.

The transaction's financing volition impact a $237m non-recourse seller’s credit, supplemented by a $25m currency publication from some Borr Drilling and its section spouse astatine closing.

The seller's recognition volition mature 2.5 years aft closing and volition beryllium secured with a archetypal lien connected the 5 jack-up rigs, among different securities.

Completion of the transaction is anticipated during the 3rd 4th of 2026, pending merger power approvals and different customary closing conditions.

Borr Drilling CEO Bruno Morand said: “We are pleased to execute this acquisition alongside our long-standing partner. Together, we person built a beardown marque with a proven operational way grounds successful Mexico.

“These rigs are being acquired astatine an charismatic valuation and astatine a little indebtedness per rig and currency breakeven level than our existing fleet.

“We proceed to spot shallow-water rigs arsenic strategically important for our customers, peculiarly astatine a clip erstwhile information of vigor proviso and reliability of execution are of heightened importance.

“In the existent environment, we expect request for jack-up rigs to increase, and the acquisition of these units positions america good to seizure aboriginal opportunities successful Mexico and globally.”

Since acquiring Fontis successful 2022, Paratus Energy has managed the organisation of astir $760m worthy of assets to stakeholders.

Under its management, Paratus Energy facilitated Fontis’ separation from Seadrill, indebtedness repayment and postulation of receivables.

Paratus Energy CEO Robert Jensen said: “With this transaction, we instrumentality a decisive measurement toward becoming a starring pure-play pipe-laying enactment vas (PLSV) institution of scale. Supported by a afloat contracted fleet, beardown currency travel visibility and a flexible equilibrium sheet, we are good positioned to present sustainable shareholder distributions portion actively pursuing charismatic maturation opportunities."