Borr Drilling’s $1.4bn gamble: three rigs land contracts
Norve, Natt and Joro rigs secure new work in West Africa, Nigeria and the UK, extending backlog into 2027.
Offshore drilling contractor Borr Drilling has secured new contracts for three of its jackup rigs, extending its operational backlog into 2027 amid ongoing financial pressures.
The 2011-built Norve rig has received a binding letter of award from an undisclosed operator in West Africa. The contract is set to begin in mid-December 2026, covering a firm scope of three wells with an estimated duration of 245 days. This commitment will keep the rig active until August 2027. Additionally, the agreement includes priced options for approximately 175 days. The Norve is currently completing its drilling program for Vaalco Energy in Gabon, where it has been operating since November 2025.
In Nigeria, Shell’s subsidiary, Shell Nigeria Exploration and Production Company, has exercised a one-well option on the 2018-built Natt rig. Under the existing well program, the rig is expected to remain under contract until early August 2027. The initial agreement was scheduled to run from April 2026 to March 2027.
UK contract and financial outlook: Borr Drilling
The 2008-built Joro rig has been awarded a contract for accommodation activities in the UK with an unnamed operator. The work is expected to start in mid-October 2026, with a firm duration of 60 days, extending the rig’s commitment until December 2026. The contract also includes priced options for an estimated 56 days. According to Borr Drilling’s latest fleet status report, the Joro is currently warm-stacked in the UK.
While the new contracts provide short-term visibility, the company continues to face financial challenges. Borr Drilling reported a $241.4 million net loss in the second quarter of 2026 and is in the process of refinancing its 2028 and 2030 notes. The company’s ability to generate incremental revenue from rigs like the Norve, Natt, and Joro will be critical in managing interest costs and supporting its expanded fleet, particularly following recent acquisitions.
In addition to these contracts, Borr Drilling has made strategic adjustments to its portfolio. The company recently sold its 51% stake in the Mexican joint venture Perfomex while retaining ownership of the underlying rigs through bareboat charters. Meanwhile, Director Tor Olav Troim has increased his stake in the company to 10% through open-market purchases, signaling confidence in Borr’s long-term prospects.
Despite these developments, the company’s financial outlook remains under scrutiny. Analysts project Borr Drilling could reach $1.4 billion in revenue and $223.6 million in earnings by 2029, though its high leverage and refinancing needs continue to pose risks.
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