Offshore jackup rig player Borr Drilling has terminated two of its drilling contracts due to the counterparty being hit with international sanctions.
According to the company, the terminations relate to the contracts for the 2013-built Odin and 2020-built Hild rigs operating in Mexico.
The two rigs had firm commitments until November 2025 and March 2026, respectively.
“The company remains fully committed to adhering to all relevant international laws and sanctions frameworks and to maintaining the highest standards of corporate governance and compliance,” Borr explained in a statement.
The company did not disclose the client, but the latest fleet status report revealed that the Hild was contracted to Fieldwood Energy. The rig was working for the company in Mexico from October 2023. The field status report did not reveal the name of the other rig’s charterer.
Borr also did not reveal the reason for the sanctions. However, Fieldwood did sell a 50% operating interest in Area 4 off Mexico, home to the Ichalkil and Pokoch shallow water fields, to Lukoil for $435m just days after the start of the war in Ukraine. As a result, Fieldwood Mexico became a subsidiary of Lukoil.
On October 22 this year, the US imposed sanctions on Rosneft and Lukoil. The sanctions also cover subsidiaries of both companies, as well as companies owned 50% or more by Rosneft and Lukoil.
