Offshore drilling contractor Borr Drilling has agreed to receive payment settlement for approximately $125 million with its major Mexican customer, related to its outstanding receivables.
The company expects to collect this amount in the first half of February 2025.
The payments represent over 75% of the outstanding receivables with the customer, whose name was not disclosed, as of December 31, 2024.
The collections will be subject to an agreed financing fee in the mid-single digit percentage range.
“The commitments by the Mexican government and the PEMEX administration towards establishing a sustainable supplier payment mechanism, of which this payment proves, will in our opinion favorably reflect on future offshore drilling opportunities in Mexico,” said Patrick Schorn, CEO of Borr Drilling.
In a separate announcement, Borr Drilling informed it rceived a notice of temporary suspension of operation for its rigs Galar, Gersemi and Grid, operating in Mexico.
The temporary suspension, announced earlier in January, will be for a period of up to March 31, 2025.
Based on discussions with the customer, it is expected that some or all of these three rigs may be resuming operation prior to this date, Borr Drilling said.