Offshore jackup rig player Borr Drilling has won contract extensions for three of its rigs in Mexico.
The 2017-built Galar and the 2018-built Gersemi have each been awarded two-year firm contract extensions that will commence in direct continuation of their existing contracts.
The driller stated that the extensions also include two one-year unpriced options and improved commercial and payment terms.
The 2019-built rig Njord also received a contract extension through April 2026. All three rigs are contracted to Mexican state-owned company Pemex.
Before these extensions, the Galar was supposed to end its work with Pemex in April 2026, while the Gersemi would wrap up its obligations to the Mexican firm in May 2026. The contract for the Njord was set to end in December this year.
The contract value of the extensions is approximately $213m, excluding options. Borr Drilling added that it was in active discussions with Pemex over a long-term extension for a contract that expires in the second quarter of 2026.
The name of that rig was not revealed. However, according to data provided in the latest fleet status report from August, the only remaining such rig is the 2018-built Grid. The contract for the rig is supposed to end in May 2026.
These extensions follow the recent termination of two of its drilling contracts in Mexico due to the counterparty being hit with international sanctions. The terminations relate to the contracts for the 2013-built Odin and 2020-built Hild rigs.
The company also revealed that it received payments of approximately $19m for its operations with Pemex.
“These collections, coupled with recent initiatives in Mexico to strengthen Pemex finances, support the company’s confidence in the continued normalisation of payment activity moving forward,” Borr Drilling explained.
