Borr Drilling Plans Partner Control of Three Jackups
Borr Drilling Plans Partner Control of Three Jackups
Anonymous
Key Points
1
The sale consideration will be based on the estimated net book value of Borr Drilling’s Perfomex equity interest as of July 31, 2026.
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The five additional Mexican jack-up rigs acquired through BC Ventures are described as premium rigs held in a 50/50 joint venture with Borr’s local partner.
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Borr said the streamlined structure would strengthen its local partnership and create a more efficient platform for future growth, including the potential deployment of additional rigs as demand develops in Mexico’s shallow-water market.
Borr Drilling is handing control of three jack-up rigs in Mexico to its local partner. The Norwegian driller will sell its 51% stake in Perfomex, the joint venture that operates the Galar, Gersemi, and Njord rigs for Mexico's state oil company Pemex, according to MarketScreener. Borr keeps ownership of the three rigs and will continue earning money through bareboat charter agreements.
The deal closes in September 2026 and simplifies Borr's Mexican operations. The company recently bought five more jack-up rigs through a separate 50/50 joint venture called BC Ventures. This move lets Borr focus on marketing its independent fleet to other regional oil operators while its local partner runs the Pemex contracts.
A Cleaner Split Between Mexican Operations
Borr's new structure separates two different business models in Mexico. The Perfomex partnership will stay focused on Pemex's integrated well services under local control. Meanwhile, Borr's five premium rigs from BC Ventures operate as an independent fleet that can pitch to other regional customers. This split removes conflicts and lets each platform focus on its own market.
Three Rigs Stay on Long Contracts Through 2030
The Njord rig has work through April 2028 with options to extend. Galar and Gersemi both have contracts running through May 2030 for Pemex. Even after Borr sells its Perfomex stake, it gets paid under bareboat charter deals. The economics stay roughly the same for Borr — it just no longer manages the day-to-day operations.
Price Tied to Book Value Next July
Borr will receive payment based on the net book value of its Perfomex stake as of July 31, 2026. The company hasn't disclosed a specific dollar amount. This formula approach locks in a fair value tied to the assets' actual balance sheet worth rather than speculative market prices. It also gives both sides time to prepare before closing in September 2026.
Stronger Partnership Positions Fleet for Growth
Borr says the streamlined structure will deepen its relationship with the local partner and build a more efficient platform for future expansion. Mexico's shallow-water market is growing, and both sides see room to deploy more rigs as demand picks up. The company believes this cleaner arrangement makes it easier to add capacity when opportunities emerge.
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