Borr Drilling has pushed back the delivery of five rigs worth a combined US$620 million being built at Singapore’s Keppel Offshore & Marine, amid an industry downturn stemming from the coronavirus pandemic.
The delivery commitments for the five jack-ups are deferred to 2023, with the first newbuilding now set to be handed over in May 2023 and the final one in December.
“In addition, there will be amendments to certain of the current financial covenants, including the minimum value covenants,” said Oslo-listed Borr.
The move represents a major rescheduling of the initial timetable for the five rigs, all of which should have been delivered by the second quarter of 2021.
Borr took delivery last April of the KFELS Super B class rig Hild from the Singapore yard and had been scheduled to receive three more high-specification units — the Huldra, Tivar and Heidrun — in 2020. The remaining two jack-ups — Var and Vale — were originally due to be delivered from Keppel early this year.
Meanwhile, the US$272 million newbuild delivery facilities for three rigs that Keppel has already delivered to Borr have been extended by 12 months (from five to six-year financing) and interest has been deferred to the fourth anniversary of the drawdown of each loan.
Borr now will make payments to Keppel of US$6 million this year, with a further US$12 million in 2022 in respect of these three units.
The drilling contractor revealed on 19 January that its creditors have supported the liquidity improvement plan announced last month.
Welcome boosts for financially pressured Borr include US$400 million-worth of syndicated bank facilities having their maturity deferred to January 2023, as did its US$195 million Hayfin facility.
“Borr Drilling is very thankful for the support received from its creditors,” said chief executive Patrick Schorn.
“The liquidity improvement plan, which started mid-2020, including this recent financing plan, has contributed over US$1 billion in total liquidity improvements until 2023 and improved our runway.
“We remain optimistic about the opportunities for Borr Drilling in the current market environment.”