Offshore drilling contractor Borr Drilling has secured contract extensions for three of its premium jack-up rigs from Mexico’s national oil company Pemex.
The rigs Galar and Gersemi have each been awarded two-year firm contract extensions that will commence in direct continuation of their existing contracts in Mexico.
The extensions also include two one-year unpriced options and improved commercial and payment terms.
In addition, the Njord jack up drilling rig has received a contract extension through April 2026.
The contract value of the extensions is approximately $213 million, excluding options, according to Borr Drilling, which added it was in active discussions with its customer in Mexico regarding long-term extensions for contracts that expire in the second quarter of 2026.
Additionally, the company confirmed it recently received payments of approximately $19 million 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 normalization of payment activity moving forward,” Borr Drilling said.
To remind, Borr Drilling terminated two of its drilling contracts in Mexico earlier in October, following the recent implementation of international sanctions affecting the client.
The terminations relate to the contracts for the Odin and Hild jack-up rigs.