Borr Drilling Secures Multi-Year Rig Contracts in Mexico
Borr Drilling has successfully secured contract extensions for three of its offshore jackup rigs operating in Mexico, strengthening its partnership with Pemex, the state-owned oil company. The extensions include two-year commitments for the Galar and Gersemi, both of which will commence immediately following their current contracts. Additionally, the Njord rig has also received an extension through April 2026, enhancing Borr’s operational stability in the region.
Contract Details and Financial Implications
The contract extensions for the Galar and Gersemi are notable as they come with improved commercial and payment terms, reflecting Borr Drilling’s ongoing discussions with Pemex. Each rig will continue its operations for an additional two years, with options for two one-year extensions available, although these options are not priced yet. The total value of these newly extended contracts is estimated at around $213 million, not including the potential options.
Prior to these extensions, the Galar was scheduled to complete its work in April 2026, while the Gersemi‘s obligations were set to conclude in May 2026. The Njord was initially expected to finish its contract in December 2023. Borr Drilling is also in advanced negotiations with Pemex regarding another rig whose current contract is set to expire in the second quarter of 2026. Although the specific rig has not been named, reports indicate it is likely the 2018-built Grid, which is contracted until May 2026.
These developments follow the recent termination of contracts for two rigs, the Odin and Hild, due to international sanctions imposed on their counterparty. Borr Drilling has received approximately $19 million in payments from Pemex, contributing to the company’s confidence in the normalization of payment activities in the future. Borr Drilling emphasized that ongoing initiatives aimed at bolstering Pemex’s financial position will further enhance operational stability and project continuity moving forward.
