Offshore drilling rig operator Borr Drilling recently announced that three of its jack-up drilling rigs have secured contract extensions. The total value of these three contracts amounts to approximately $213 million (excluding options).
All three platforms are leased by Mexico’s state-owned enterprise Pemex. Among them, the Galar, built in 2017, and the Gersemi, built in 2018, have secured two-year fixed-term contract extensions, directly continuing their existing contracts. The extended contracts also include two one-year options without pricing commitments, along with improved commercial and payment terms. Additionally, the “Njord,” built in 2019, has secured a contract extension through April 2026.
Under the existing contracts, the Galar was originally scheduled to conclude its cooperation with Pemex in April 2026, while the Gersemi was set to complete its obligations in May 2026. The contract for the Njord will expire this December.
According to Borr Drilling, the company is actively negotiating with Pemex regarding the renewal of a long-term contract set to expire in the second quarter of 2026. The specific drilling rig involved has not been disclosed, but based on the latest fleet status report from August, the only qualifying rig is the “Grid,” built in 2018, whose original contract was scheduled to expire in May 2026.
Additionally, Borr Drilling has recently received approximately $19 million in operational payments from Pemex. Combined with Mexico’s recent measures to strengthen Pemex’s financial position, these collections bolster the company’s confidence in the continued normalization of future payment activities.
Recently, Borr Drilling terminated two drilling contracts in Mexico due to international sanctions imposed on the counterparties. The contracts involved the “Odin”, built in 2013, and the “Hild”, built in 2020.