Financial Energy Review
Borr Drilling Ltd. has issued an update on its offshore drilling rig fleet.rr Drilling Ltd. has issued an update on its offshore drilling rig fleet.
The company has received letters of award for work in the Asia/Pacific region for two of its premium jackups, of which one is a newbuild being activated. The contracts’ estimated duration, excluding options, are expected to be for 365 days and 200 days, respectively. The rigs are expected to start contracts in 3Q 2020.
ExxonMobil has notified the company of the early termination of the contracts for the jackups Gerd and Groa offshore Nigeria. The rigs were under contracts originally committed until April 2021 and May 2021, respectively. The contracts for both rigs require 180-day notice for early termination. The company said it is in discussions with ExxonMobil with regards to planning the discontinuity of operations.
The drilling contractor has received notice to stop operations for the jackup Norve, working offshore Gabon for BW Energy. The rig finished operations in early April 2020, around three months before previously estimated.
TAQA Bratani has opted to cut short the contract for the semisubmersible MSS1 in the UK. The rig finished its contract on March 25, 2020, one month earlier than previously estimated. The rig is entitled to an early termination fee as per contract provisions, the company said.
Following its campaign with Neptune Energy offshore the Netherlands, the jackup Prospector 5 has arrived in Harwich. The next customer, Perenco, has elected not to proceed with the previously announced contract for the rig. The jackup is scheduled to start a contract with CNOOC in the North Sea between September and November 2020.
The net impact of the new contracts and the early termination of the existing contracts is estimated to affect the total revenue backlog negatively by about $16 million.
In addition, the jackups Odin and Galar started operations for Pemex during 1Q 2020. The Njord is expected to begin its contract with Pemex soon. Also, the jackup Saga started its contract with Eni offshore Vietnam in February 2020.
Borr added it could be subject to more contract suspension notices given current market conditions
