OSLO, Norway, April 13, 2020 /PRNewswire/ -- Borr Drilling
Limited (the "Company") (NYSE: BORR) (OSE: BDRILL) is pleased to
announce that it has been awarded LOAs for work in the Asia Pacific region for two of its premium
jack ups, of which one is a newbuild being activated. The
contracts' estimated duration, excluding options, will be for 365
days and 200 days respectively. The rigs are expected to commence
contracts in the third quarter of 2020.
The Company has received notices of early termination of
contracts from Exxon Mobil for the rigs "Gerd" and "Groa" which are
working in Nigeria under contracts
originally committed until April 2021
and May 2021, respectively. The
contracts for both rigs require 180 days notice for early
termination. The Company is in discussions with Exxon Mobil with
regards to planning the discontinuity of operations for both rigs
following the early termination notices.
The Company has received notice to stop operations for the
"Norve", working in Gabon for BW
Energy. The rig finished operations in early April 2020, around three months before previously
estimated.
The Company has received a notice of early termination for the
semi-submersible "MSS1" which finished its contract on 25 March 2020, one month earlier than previously
estimated. The rig is entitled to an early termination fee as per
contract provisions.
Following its campaign with Neptune, the "Prospector 5" has
safely arrived in Harwich. The Company received notification from
its follow-on customer, Perenco, electing not to proceed with the
previously announced contract for the rig. The rig is scheduled to
commence operation for CNOOC in the North Sea between September and
November 2020.
The net impact of the new contracts and the early termination of
the existing contracts is estimated to affect the total revenue
backlog negatively by approximately USD 16
million.
Furthermore, the rigs Odin and Galar have commenced operation
for Pemex during Q1 2020, and the Njord is expected to commence
operations with Pemex shortly. The rig Saga commenced operation in
Vietnam for ENI in February
2020.
Borr Drilling is experiencing the impact of current
unprecedented market conditions and the global market reaction to
the COVID-19 pandemic, in particular as a result of the practical
issues arising from government-imposed travel restrictions, border
closures and quarantines. Safety is our primary focus and we
have implemented changes to working arrangements to protect
everyone working on our rigs and at our onshore sites. We
also respect similar arrangements put in place by our customers and
suppliers to safeguard the safety and well-being of their
personnel. Some of our customers are unable to continue safe
operations in the current circumstances, are experiencing
difficulties in their respective supply chains and have announced
cost-saving initiatives. Further, a number of Customers have
contractual rights in place to suspend operations in certain
circumstances, and we could be subject to further suspension
notices in light of market conditions. At this stage the Company
cannot predict with reasonable accuracy the duration of such
suspensions if exercised or the impact on the Company.
The Company is pleased to see that we have managed to keep a
solid technical utilisation for the fleet in these challenging
times of 99.5% YTD. The Board and Management want to thank the
organisation for great efforts to meet the many logistical
challenges and keep a safe operation in this difficult environment.
April 13, 2020
Hamilton, Bermuda
Borr Drilling Limited
Forward looking statements
This press release includes forward looking statements, which do
not reflect historical facts and may be identified by words such as
"plan", "may", "believe", "continue", "estimate", "expect",
"intends", "may", "should", "will" and similar expressions and
include statements relating to LOAs, contracts, estimated duration
of contracts, contract cancelations, suspensions and stop orders
and discussions with customers on early termination, contractual
entitlements in event of early termination, plans for new
operations including expected commencement date, contractual
backlog and the expected impact of the foregoing on backlog, the
impact of COVID-19 and related restrictions on our business,
customers and suppliers, and other non-historical statements.
Such forward-looking statements are subject to risks,
uncertainties, contingencies and other factors could cause actual
events to differ materially from the expectations expressed or
implied by the forward-looking statements included herein,
including risks related to performance of contracts, risks that
rigs do not commence operations as expected, risks of further
cancellation, suspension or stop orders under contracts, risks to
our operation of the Covid-19 outbreak and the impact of the
outbreak on our employees, customers and suppliers and the ultimate
impact of COVID-19 and related impacts on our business and other
factors described in the section entitled "Risk Factors" in our
filings with the Securities and Exchange Commission. Such risks,
uncertainties, contingencies and other factors could cause actual
events to differ materially from the expectations expressed or
implied by the forward-looking statements included herein.
These forward-looking statements are made only as of the date
of this release. We do not undertake to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
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SOURCE Borr Drilling Limited
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SOURCE Borr Drilling Limited