Tor Olav Troim’s Borr Drilling has signed a deal with Singapore’s Keppel Offshore & Marine to acquire five resale jackup rigs for $745m.
The KFELS B class rigs are currently under construction at Keppel FELS, with one to be delivered in 2019 and the other four in 2020. The order is in addition to five jackups on order at Keppel, which Borr Drilling picked up as part of its $1.35bn acquisition of Transocean’s entire jackup fleet.
Svend Anton Maier, CEO of Borr Drilling, commented: “We are pleased to be getting another five high quality jackup rigs from Keppel FELS on top of the five we acquired earlier. Our partnership with Keppel is crucial as it enables us to provide the market with the latest in jackup rig technology, safety and operability. This is an opportune time for us to grow our fleet of highly capable jackup rigs as the market is showing signs of recovery from the bottom of the business cycle.”
Borr Drilling announced a $350m convertible bond offering yesterday, which will be used to finance the acquisition along with a $200m bank facility and optional delivery financing of $432m.