BC Ventures, Borr Drilling’s 50:50 joint venture with its well construction partner in Mexico, has completed the acquisition of five jackup rigs from Fontis Finance for $287 million.

BC Ventures has acquired the rig-owning entities of two Friede & Goldman JU-2000E design rigs, the Oberon and Titania FE, and three LeTourneau Super 116-C design rigs, the Courageous, Defender, and Intrepid.

All are presently located in Mexico.

The transaction increases Borr’s owned and jointly-owned global fleet to 34 rigs, as well as expanding its presence in Mexico’s shallow-water sector.

Keppel launches offshore rig fund

In Singapore, Keppel plans to monetize up to 10 legacy rigs through a new private fund, Keppel Offshore Fund (KOF), managed by the company.

And an indirect subsidiary of Keppel, along with funds, accounts and entities managed by Apollo, have agreed to subscribe for limited partnership interests in the fund.

Through the indirect subsidiary Rigco Holding, Keppel will divest six operational rigs this year to KOF for about $1.2 billion.

In addition, Keppel plans to progressively complete and potentially divest four further rigs, in various stages of completion, to KOF from 2027 to 2028. The potential price could be $998 million.

Another three legacy rigs are not part of this transaction; Keppel will explore options for their monetization.

The company said the arrangement, which remains subject to regulatory approvals, coincides with a strengthening offshore rig market, with high utilization rates and structural supply constraints.

Aging fleet supports long-term demand

Keppel added that after a decade that brought no newbuild activity, the global drilling fleet is aging rapidly and the higher cost, longer construction lead times and stricter financing requirements for newbuild rigs will likely serve to constrain future supply. 

So, there should be sustained demand for high-quality modern offshore rigs, with attractive opportunities for the owners.