Offshore drilling company Borr Drilling has agreed to purchase nine jack-up drilling rigs from a subsidiary of Sembcorp Marine as the freshly-minted offshore driller continues to snatch up rigs at historically low prices.
The acquisition will increase the Borr Drilling fleet to a total of 26 jack-up rigs once all rigs under construction have been delivered.
The rigs were sold by PPL Shipyard in Singpore, where all nine rigs were either built or are under construction. All nine rigs are similar in design.
“[Borr Drilling] continues to deliver on its strategy to acquire premium jack-up drilling rigs at attractive prices and consolidate ownership in the premium segment of the overall jack-up rig fleet,” the company said in a statement.
Total consideration for the transaction is expected to be approximately USD 1.3 billion. Borr says it has secured optional delivery financing of approximately $800 million on “attractive terms”. As part of the agreement, Borr will make an upfront payment of $500 million.
Borr Drilling will take delivery of the first rigs in Q4 2017, with the remaining rigs being delivered quarterly through Q1 2019.
Borr Drilling was established late in 2016 by former executives of Seadrill, led by Tor Olav Troeim, a former long-time adviser to billionaire John Fredriksen. Troeim split from Fredriksen in 2014.
Earlier this year Borr Drilling acquired Transocean’s entire fleet of 15 jack-ups, including five still under construction, for approximately $1.4 billion. Borr also has two jack-ups formerly owned by Hercules Offshore.