Borr Drilling does $1.35bn deal for Transocean jackup fleet

Borr Drilling has signed a letter of intent to acquire from Transocean its entire fleet of 15 jackup rigs.

The deal is worth around $1.35bn and will see Borr Drilling take on 10 rigs from Transocean’s existing fleet, and an additional five jackups currently on order at Singapore’s Keppel Fels.

A deposit for the deal has been placed, and the board of Keppel Fels have pre-approved the novation of the newbuild contracts.

Borr Drilling has also announced an $800m equity offering to finance the deal, with the book already covered.

The acquisiton is expected to be completed by the end of May.

Born Drilling was formed by a clutch of former confidantes of John Fredriksen. Rune Magnus Lundetræ, a former CFO of Seadrill, is the CEO while Fredriksen’s former right hand man Tor Olav Troim is a key board member.

The company took on its first two jackup rigs in December 2016 from Hercules Offshore for a total of $130m.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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