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Borr Drilling to Exit Mexico JV, Retain Three PEMEX Rigs

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Borr Drilling said on Tuesday it had agreed to sell its 51% stake in two Mexican joint ventures to its local partner, simplifying its operations in the country while retaining ownership of three jack-up rigs operating under contracts with state energy firm Petroleos Mexicanos.

The deal will give the local partner full ownership of Perforaciones Estrategicas e Integrales Mexicana and Perforaciones Estrategicas e Integrales Mexicana II, collectively known as Perfomex, Borr said in a statement.

The unnamed partner will take responsibility for managing and operating Borr's jack-up rigs Galar, Gersemi and Njord, while Borr will retain ownership of the rigs and continue participating in their contracts through bareboat charter agreements.

The company said the economics of the arrangements are expected to remain largely unchanged.

Njord is contracted with PEMEX through April 2028, with extension options thereafter, while Galar and Gersemi have contracts running through May 2030.

The transaction follows Borr's recent expansion in Mexico through the acquisition of five premium jack-up rigs, which it jointly owns with its local partner through BC Ventures, a 50-50 venture.

Perfomex will continue handling integrated well services and its activities with PEMEX under the new structure, while Borr will independently operate and market its fleet to other operators in the region through affiliated companies.

Borr said the sale would simplify its corporate and operating structure in Mexico, strengthen its local partnership and provide a more efficient platform for future growth.

The streamlined structure is projected to support the deployment of additional rigs as demand develops in Mexico's shallow-water market.

The transaction is projected to close in September, subject to customary closing conditions.

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