Borr Drilling locks in jackup work through 2027
The Oslo-listed driller secures a Vietnam campaign, a Dutch extension and a Gulf of Mexico slot—all within weeks.
Borr Drilling has secured a string of new contracts and extensions for its jackup rigs, locking in firm work through mid-2027 and fuelling a 52.4% surge in its share price over the past three months. Oslo- and New York-listed offshore driller announced a new three-well campaign for the 2013-built jackup Idun in Vietnam, alongside a nine-month extension for the 2008-built Bestla in the Netherlands, operated by Italian major Eni.
The Idun will begin its 130-day campaign in the fourth quarter of 2026, directly transitioning from its current contract. Meanwhile, Eni has exercised a nine-month option on the Bestla, extending its contract to September 2027, with an additional fixed-price option for a further nine months. Borr is set to assume operational management of the Bestla in el cuarto trimestre de 2026, following the completion of its bareboat charter with the previous owner.
Why these contracts matter for Borr’s bottom line: Borr Drilling
These contracts come at a critical time for Borr Drilling, which has seen its share price rebound sharply after a challenging period. The company’s stock returned 3.8% in a single day following the announcements and has climbed 52.4% over the past 90 days, though its three-year total shareholder return remains 18.1% lower. Analysts have taken note, with a consensus price target of $3.1, though the most bullish estimates reach $4.0, close to the current trading price of $4.13.
Brent Crude
The Odin, another of Borr’s jackup rigs, has already begun work offshore Texas after mobilising in mid-August. Its current contract runs until December 2026, with follow-on work lined up with operator Cantium from February to July 2027. This back-to-back scheduling ensures continuous utilisation, a key metric for offshore drillers seeking to maximise returns on their assets.
Jackup rigs like the Idun, Bestla, and Odin are mobile offshore drilling units equipped with legs that can be lowered to the seabed, allowing them to operate in shallow waters. These rigs are typically used for exploration and production drilling, making them essential for oil and gas companies looking to tap into offshore reserves. Borr Drilling’s fleet, which includes 23 jackups, is designed to meet the demands of operators in regions like the North Sea, Southeast Asia, and the Gulf of Mexico.
What’s next for Borr and its shareholders?
The recent contract wins have positioned Borr Drilling closer to its narrative fair value of $4.25, with the company currently trading at a 2.8% discount. However, analysts remain divided on the stock’s outlook, with price targets ranging from $2.8 to $4.0. The disparity reflects broader uncertainties in the offshore drilling sector, including fluctuating oil prices, geopolitical risks, and the transition toward renewable energy sources.
For investors, the key question is whether Borr can maintain this momentum. The company’s ability to secure long-term contracts and manage operational costs will be critical in determining its future performance. With the Bestla’s contract potentially extending to mid-2028 and the Odin booked through July 2027, Borr has taken significant steps to stabilise its revenue stream. However, the offshore drilling market remains volatile, and external factors such as regulatory changes or shifts in energy demand could impact its trajectory.
Borr Drilling’s focus on high-specification jackup rigs has allowed it to compete effectively in a crowded market. The company’s strategy of targeting regions with strong demand for offshore drilling services, such as the North Sea and Southeast Asia, has paid off, as evidenced by the recent contract wins. Yet, the industry’s long-term outlook remains tied to the broader energy transition, with pressure mounting on oil and gas companies to reduce emissions and invest in cleaner alternatives.
For now, Borr’s shareholders can take comfort in the company’s improved utilisation rates and the visibility provided by its extended contracts. The next few quarters will be crucial in determining whether Borr can build on this momentum or if external challenges will derail its recovery. Investors will be watching closely as the company navigates a complex landscape, balancing short-term gains with long-term sustainability.
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