Borr Drilling Limited Completes Strategic Streamlining of Mexican Operations

Borr Drilling Limited, an international player in the drilling industry, has taken a significant step in streamlining its operations in Mexico. On September 15, 2026, the company announced the completion of definitive agreements to divest its 51% stake in two local joint ventures, Perforaciones Estratégicas e Integrales Mexicana S.A. de C.V. and Perforaciones Estratégicas e Integrales Mexicana II, S.A. de C.V., collectively known as Perfomex. This divestment has been made to a long-term local partner and is expected to simplify the company's operational structure and enhance efficiency going forward.

With this transaction, Borr Drilling will fully divest its interest in Perfomex. However, the company will maintain ownership of its three jack-up rigs—Galar, Gersemi, and Njord—which continue to operate under contractual agreements with PEMEX, the state-owned petroleum company of Mexico. These rigs are crucial for ongoing operations, and Borr Drilling has structured bareboat charter agreements to maintain economic viability from these assets.

Njord is under contract until April 2028, with options for extensions, while Galar and Gersemi's agreements extend through May 2030. This strategic move illustrates a shift in Borr Drilling's focus towards optimizing its partnerships and operations within the region.

The divestment comes on the heels of Borr Drilling's recent expansion in Mexico, which includes the acquisition of five premium jack-up rigs via BC Ventures Limited, a joint venture established with its local partner. Following the closure of this transaction, Perfomex will continue operations delivering integrated well services under the management of the local partner, allowing Borr Drilling to independently expand its market presence and operations.

The streamlined structure aims to bolster Borr's local partnership dynamics, providing an efficient platform for future growth and ramping up operations as the demand in the established shallow-water market increases. Furthermore, Borr expects to deploy additional rigs in the region as they tap into heightened demand for offshore drilling services, particularly with PEMEX and other operators.

Under the terms of the agreements, a transition period post-closing is set to ensure a smooth transfer of operational responsibilities to the local partner. The sale consideration has been determined based on the net book value of Borr's equity interest in Perfomex, with the transaction anticipated to close by the end of September 2026, pending standard closing conditions.

Borr Drilling has positioned itself as a leader in the offshore oil and gas drilling sector since its formation in 2016. Known for its modern, high-specification jack-up rigs, it has established itself in providing drilling services tailored for shallow-water applications. The insights gained from this latest transaction are expected to not only strengthen their operations in Mexico but also to set a precedence for future ventures in similar markets.

As Borr Drilling moves forward, it places emphasis on building on its existing partnerships while exploring new opportunities, marking a promising future in the offshore drilling landscape. For further details on their operations and latest updates, visit Borr Drilling’s official website.

This divestment exemplifies Borr Drilling's commitment to adapting its operational strategies while maintaining its core capabilities in the highly competitive offshore market. With ongoing support from its local partners, the company is poised for significant growth in the years ahead, aligning with market developments and demands.