One of Borr's jack-up rigs

Borr Drilling sells two jack-up rigs

Offshore drilling contractor Borr Drilling has sold two jack-up rigs for total cash proceeds of $15.8 million.

One of Borr's jack-up rigs; Source: Borr

Borr said on Thursday it had sold two standard jack-up drilling rigs, the Dhabi II and the Paragon B152, built in 1981 and 1982, respectively.

The sale also included the associated backlog effective from 1 April 2020.

The company noted it would continue to operate the rigs under a services agreement, which would ensure continuity for the customer.

Both rigs are currently under contract with ADNOC in the UAE.

The rigs are unencumbered, and the liquidity effect for the company is equal to the sales proceeds.

The company expects to record a gain of approximately $11.5 million.

Borr also added that the sale of the rigs was in line with its long-term strategy to focus on the operation of its core fleet of modern jack-up drilling rigs.