Borr Drilling has entered into definitive agreements to acquire five premium jack-up rigs from Fontis Finance for a purchase price of $287 million.
The acquisition will be completed through BC Ventures Limited, a newly established 50/50 joint venture between subsidiaries of Borr Drilling and its long-term well construction partner in Mexico.
Under the transaction, the joint venture will acquire the rig-owning entities, which own two Friede & Goldman JU-2000E design rigs and three LeTourneau Super 116-C design rigs. These five rigs are currently located in Mexico.
The transaction is expected to be financed through a $237 million non-recourse seller’s credit, in addition to a cash contribution of $25 million from each of Borr Drilling and its local partner at closing. The seller’s credit will have a 2.5-year maturity from the date of closing and will be secured by, among other things, a first lien on the five jack-up rigs.
Borr Drilling CEO Bruno Morand said, “We are pleased to execute this acquisition alongside our longstanding partner. Together, we have built a strong brand with a proven operational track record in Mexico. These rigs are being acquired at an attractive valuation and at a lower debt per rig and cash breakeven level than our existing fleet.
“We continue to see shallow-water rigs as strategically important for our customers, particularly at a time when security of energy supply and reliability of execution are of heightened importance. In the current environment, we expect demand for jack-up rigs to increase, and the acquisition of these units positions us well to capture future opportunities in Mexico and globally.”
The transaction is expected to close within Q3 2026, subject to customary closing conditions, including merger control approvals.