Fast-growing Norwegian offshore driller Borr Drilling has done a deal with Sembcorp Marine subsidiary PPL Shipyard to acquire nine Pacific Class 400 jackup rigs.
Borr Drilling is paying around $1.3 bn for the nine rigs. A $500m upfront down payment will be made and the deal includes $800m optional delivery financing with an additional market-based fee based on future uplift in value of the rigs.
Delivery of the rigs progressively is over a 14-month period, with six of the rigs coming from contracts that PPL Shipyard has already terminated with the original clients. The other three rigs are all also under various stages of construction.
Borr Drilling immediately set about raising funds for the deal, announcing a new share offer to raise up to $650m.
Borr Drilling was formed in December 2016 and currently has a fleet of 17 jackup rigs. It entered the market with a pair of Hercules Offshore jackups last year and in March acquired Transocean’s entire fleet of 15 jackup rigs.