#Bermuda #Hamilton #Borr Drilling #jack-up rigs #Fontis Finance

Borr Drilling's New Joint Venture Acquisition

Borr Drilling Limited, an international drilling contractor, has made headlines with its recent announcement regarding a strategic acquisition of five premium jack-up rigs through a newly formed joint venture. This exciting news was published on March 23, 2026, and involves a collaborative effort with Fontis Finance Ltd.

This deal highlights Borr Drilling's commitment to expanding its operational capacity in the oil and gas sector. The company is set to acquire these rigs for a total price of $287 million, a move that reflects their ongoing strategy to enhance their fleet and fulfill increasing market demand. The acquisition will take place through BC Ventures Limited, a 50/50 joint venture with a long-standing well construction partner in Mexico. This partnership showcases Borr’s ongoing focus on collaboration and operational excellence.

Details of the Acquisition

The joint venture will obtain ownership of the rig-owning entities, which include two Friede Goldman JU-2000E design rigs and three LeTourneau Super 116-C design rigs situated in Mexico. This acquisition is expected to be financed through a $237 million seller's credit along with a cash contribution from both Borr Drilling and its local partner, amounting to $25 million each at the closing of the deal. The seller's credit, to mature within 2.5 years of closing, will be secured by primary liens on the five jack-up rigs, ensuring financial stability and minimizing risk for both parties.

Borr Drilling's CEO, Bruno Morand, expressed enthusiasm regarding the acquisition, emphasizing their strategic importance. He stated, "Together, we have built a strong brand with a proven operational track record in Mexico. These rigs are being acquired at an attractive valuation, with lower debt per rig and cash breakeven levels compared to our existing fleet.

As the demand for shallow-water rigs becomes more critical, particularly in today's energy climate, this acquisition positions Borr Drilling favorably to not only meet present needs but also to capture future opportunities both in Mexico and globally.

Future Outlook

The transaction's completion is anticipated within the third quarter of 2026, pending customary closing conditions and merger control approvals. Looking forward, Borr Drilling is keen on capitalizing on the anticipated rise in demand for jack-up rigs, especially as the energy sector places an increasing emphasis on supply security and operational reliability.

With this acquisition, Borr Drilling strengthens its standing in the offshore oil and gas industry, showcasing its commitment to modernize and expand its fleet while ensuring high standards of operational excellence. It is clear that Borr Drilling is not only adapting to current market shifts but is setting the stage for a robust future.

About Borr Drilling

Borr Drilling Limited, incorporated in Bermuda in 2016 and publicly listed since 2019, operates a modern fleet of jack-up rigs designed for shallow water operations. With a focus on safety and efficiency, the company serves a vital role in the offshore oil and gas sector globally. To learn more about Borr Drilling, visit their official website at www.borrdrilling.com.

This acquisition is another significant step forward for Borr Drilling, further establishing its reputation as a leader in the offshore drilling market, and demonstrating its potential for future growth and opportunities in light of evolving energy needs.