Longer contracts return as Transocean, Borr and BW Energy add work

Drilling contractors continued to lock in longer-term visibility as Transocean secured contract extensions and new awards totaling about $1 billion, driven by Petrobras’ ongoing rig requirements offshore Brazil and fresh demand in Norway. In addition, Borr Drilling strengthened jackup utilization through new contracts spanning Africa, Europe and Asia, and BW Energy executed a sale and leaseback of a rig to release capital while maintaining strategic optionality.

Transocean secured $1B in contract awards

Petrobras continues to prolong the assignments of contracted drillships offshore Brazil, with two new deals confirmed by Transocean.

Deepwater Orion’s 1,095-day contract extension, which takes effect in March 2027, will keep the vessel on duty with Petrobras until March 2030.

The other drillship, Deepwater Aquila, is now committed for a further year through June 2028.

In addition, Transcocean has secured a 1,095-day contract for the semisub Transocean Barents from Vår Energi for services offshore Norway, at a rate of $450,000/d. The contract is expected to take effect by mid-2027, with extension options that could keep the rig in Norway into 2034.

Borr Drilling inks new contracts for four jackup rigs

Borr Drilling has gained new orders for four of its premium jackup rigs in different regions.

Borr Drilling has issued a binding letter of award (LOA) for Prospector 5 for work offshore Gabon. This covers four wells over a minimum of 320 days, with the program set to start in the third quarter following completion of the rig’s current contract and scheduled special periodic survey.

Options allow for the work to be extended by an additional 220 days.

Eni has agreed to keep the Ran jackup in Mexico through September for drilling and accommodation activities. Offshore Europe, the Joro will continue work for the current client into May.

Finally, Borr has received a binding LOA from an unnamed operator for a two-well, 100-day campaign offshore Vietnam that will start in July, in direct continuation of the rig’s current commitment.

BW Energy signs leaseback deal for Jasmine Alpha rig

BW Energy has signed a sale and leaseback agreement or the Jasmine Alpha drilling jackup rig with Minsheng Financial Leasing Co.

Under the arrangement, BW Energy has entered into a 12‑month lease of the rig, which could be extended by a further 12 months. The company will also receive an $80 million cash consideration.

CFO Thomas Young said, “We are realizing substantial value from an asset acquired at a deep discount while maintaining operational availability and full strategic flexibility, including the potential future repurposing into a production platform for deployment in our development portfolio.”

The two companies already had a cooperation, which included the provision of financing for BW Energy’s Maromba B wellhead platform offshore Brazil.