Borr Drilling Exits Mexican Joint Venture, Retains Rig Ownership
Event summary
- Borr Drilling to divest 51% stake in Mexican joint ventures Perfomex to local partner, completing exit by September 2026.
- Company retains ownership of three jack-up rigs (Galar, Gersemi, Njord) under bareboat charters with unchanged economics.
- Njord contracted through April 2028 with extensions; Galar and Gersemi through May 2030.
- Transaction follows acquisition of five premium jack-up rigs via 50/50 joint venture with local partner.
- Sale consideration based on net book value as of July 31, 2026.
The big picture
Borr Drilling's exit from its Mexican joint venture simplifies its corporate structure while maintaining rig ownership, aligning with broader industry trends of operational streamlining in offshore drilling. The move positions the company to independently market its fleet to a wider range of operators beyond PEMEX, potentially expanding its footprint in Mexico's established shallow-water market. The transaction follows recent fleet expansion, indicating strategic focus on scaling operations through targeted partnerships.
What we're watching
- Contract Stability
- Whether bareboat charter economics remain unchanged post-transition and extension options materialize as expected.
- Market Expansion
- The pace at which Borr Drilling deploys additional rigs in Mexico's shallow-water market.
- Partnership Dynamics
- How the streamlined structure impacts future contracting opportunities with PEMEX and other operators.
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