Borr Drilling's JV to Buy Five Jack-up Rigs for $287 Million
Borr Drilling's BC Ventures JV will acquire five jack-up rigs in Mexico from Paratus for $287 million, including two JU-2000E and three Super 116-C units. The deal uses a $237 million non-recourse seller’s credit and $50 million in combined cash contributions, closing expected in Q3 2026.
1. Acquisition Details
BC Ventures, a newly formed JV between Borr Drilling and CME, has signed definitive agreements to purchase five jack-up rigs from Fontis Finance for $287 million. The acquired units comprise two Friede & Goldman JU-2000E design rigs and three LeTourneau Super 116-C design rigs, all currently operating in Mexican waters.
2. Joint Venture Structure
BC Ventures is structured as a 50:50 partnership between subsidiaries of Borr Drilling and Proyectos Globales de Energía y Servicios CME, leveraging CME’s established presence in Mexico. The transaction is split into two interdependent deals: CME’s cash purchase of Fontis’ Mexican operations and a joint acquisition of the Singapore-based rig-owning entities.
3. Financing Terms
Financing is provided by a $237 million non-recourse seller’s credit maturing 2.5 years post-closing, secured by a first lien on the rigs and other assets. Each JV partner will contribute $25 million in cash at closing to supplement the seller’s credit.
4. Strategic Rationale
Borr Drilling expects the new rigs to lower debt per rig and reduce cash breakeven levels compared to its existing fleet. Management anticipates growing demand for shallow-water jack-up capacity in Mexico and global markets, with regulatory approvals and customary conditions paving the way for a Q3 2026 closing.