Borr Drilling (NYSE: BORR) has signed a deal to sell three jackup oil rigs for $320 million.
The deal, to an “undisclosed third party”, covers the Tivar, Huldra and Heidrun vessels currently under construction in Singapore at the Keppel FELS shipyard.
Borr Drilling said the deal is expected to conclude within 30 says.
Although details have not been disclosed on the buyer, Borr said the rigs are expected to be used “by the prospective owner in a captive market and represent limited competition to Borr Drilling’s fleet”.
Upon conclusion, Borr’s fleet will comprise 23 delivered rigs, 20 of which are under contract, and two more under construction with Keppel FELS.
The firm said it aims to have all 23 delivered rigs contracted by the end of 2022, benefitting from the “fast-improving jack-up market”.
In 2021 New York and Oslo-listed Borr had reportedly pushed back the delivery of five rigs – including the Tivar, Huldra and Heidrun – to 2023 due to the industry downturn.
All five had initially been due for delivery in the second quarter of 2021.
The deal comes amid a vastly changed rigs market with increased demand and rates as demand for oil and gas prices surge.
Borr Drilling’s share price is up 10% over the last month to $5.55.