View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
April 14, 2020

Covid-19 impact: Borr Drilling faces early termination of contracts

Borr Drilling has received a series of notices of early contract terminations as the oil and gas industry continues to battle the impact of Covid-19 crisis.

By Aninda Chakraborty

Borr Drilling has received a series of notices for early contract terminations from ExxonMobil and BW Energy.

Free Report
img

Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
by GlobalData
Enter your details here to receive your free Report.

ExxonMobil has given notice of early termination for the rigs ‘Gerd’ and ‘Groa’, offshore Nigeria. Originally, the contracts were scheduled to run until April 2021 and May 2021, respectively. In a statement, Borr Drilling noted: “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.”

Additionally, BW Energy has sent a notice to Borr Drilling terminating the operations of Norve operating in Gabon. The rig stopped its operations around three months ahead of earlier estimations.

Borr Drilling has also received a termination notice for the semi-submersible ‘MSS1’. However, the company is entitled to an early termination fee as per contract provisions.

In the North Sea, the Prospector 5 has reached Harwich following its campaign with Neptune. However, its follow-on customer, Perenco, decided not to proceed with the previously announced contract. Its next contract will be with CNOOC, from Spetember 2020.

Given the current circumstances, Borr Drilling anticipates further termination notices.

On the other hand, the company said it was pleased to receive letters of award for two of its premium jack-ups for works in the Asia Pacific region.

The rigs are slated to being operational in the third quarter of this year. The duration of the two contracts will be for 365 days and 200 days respectively, excluding options.

The net impact of these early terminations and new contracts is expected to hit Borr’s total revenue backlog by $16m.

Related Companies

Free Report
img

Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Offshore Technology