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Energy Voice | Borr anticipates new jack-up rig will 'generate positive income'

Oslo-listed firm Borr Drilling today announced the purchase of a new jack-up drilling rig which it hopes can “generate positive income”.

Borr bought the Hull B378 drilling rig for £92 million, more than half the original price of £183m.

The acquisition has been fully financed through through establishment of a new secured financing facility arranged by two Nordic banks.

Borr also revealed it has increased its contracted and committed units from zero in 2017 to 18 contracted for 2019, 2020 and 2021.

With 18 rigs now contracted for work, Borr said it expects to “generating positive cash flow after taking into account operating cost, layup cost for the remaining units and financing cost”.

The firm claims the new rig could generate up to an additional £15m in new revenue.

Last year, Borr Drilling reported modest losses of £5.7 million for Q2, while holding almost £1.5 billion in assets.

The firm also struck a deal to take over rival company Paragon Offshore in 2018 in which it acquired 22 jack-up drilling rigs.

Finalised in March, the deal March valued the Houston-headquartered Paragon at £180 million.

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