Borr Drilling in $1.35 billion purchase of Transocean’s offshore rigs

Borr Drilling in $1.35 billion purchase of Transocean’s offshore rigs

Newly established Borr Drilling has swooped to buy Swiss-based Transocean’s (NYSE:RIG) entire fleet of shallow-water drilling rigs in a US$1.35 billion deal.

The deal covers 10 high-specification jack-up rigs along with five more under construction, meanwhile Transocean will maintain a fleet of around 50 larger deep-water rigs.

Born out of the financial downfall of Seadrill last year, the rig market deal is the company’s largest in its short history.

Borr was founded by Tor Olav Troeim, former long-term partner of Norwegian shipping tycoon John Fredriksen, with the goal of taking advantage of depressed oil prices in order to pick up cheap assets, and currently holds just two rigs.

However, this latest purchase will allow the start-up to significantly expand its offshore portfolio, having secured $800 million in financing through a private placement of shares.

The transaction is expected to be completed before the end of May 2017.

Transocean’s other offshore assets include 30 ultra-deepwater units, seven harsh-environment rigs, three deepwater rigs and six mid-water units.