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    1. Drilling & Completion

    Borr Drilling alters arrangements with offshore Mexico partner

    June 21, 2021
    Borr Drilling expects five of its drilling rigs to remain in employment offshore Mexico until the end of 2022.
    Related To: Borr Drilling
    (Courtesy Borr Drilling)
    The jackup Odin operates offshore Mexico.
    The jackup Odin operates offshore Mexico.

    Offshore staff

    HAMILTON, Bermuda – Borr Drilling expects five of its drilling rigs to remain in employment offshore Mexico until the end of 2022.

    All are working for joint ventures jointly owned with the company’s Mexican partner and have provided integrated well services for Pemex since May 2019.

    Collectively they have delivered incremental production of around 125,000 b/d of oil from 21 wells drilled so far.

    The JVs have now received a request for extension of this program.

    Borr and its partner have entered a memorandum of understanding to implement certain changes, under which the partner will acquire Borr’s 49% stake in the Opex and Akal JVs for $28 million.

    In parallel, Borr will acquire an incremental 2% stake in the JVs performing drilling services from the Mexican partner, giving Borr a 51% ownership position.

    The JVs will continue to earn day rates from Opex and Akal through regular drilling contracts.

    Borr added that it was optimistic concerning re-activations of additional warm stacked rigs due to improving market conditions.

    06/21/2021