Borr Drilling has signed a letter of intent with Transocean to acquire 15 high-specification jack-up rigs for approximately $1.35bn.

This acquisition includes Transocean’s full jack-up fleet comprising ten rigs, with the remaining five under construction at Keppel Fels Limited.

The total consideration of $1.35bn includes remaining contract backlog and pending yard instalments to Keppel Fels for the five new-builds.

Keppel Fels board has already approved the new building contracts.

Reuters reported that Transocean had originally agreed to pay $219m for each new rig. Under the amended agreement, this amount has been reduced to $216m for each unit.

"The company focuses on acquiring cheap assets as most rig firms reduced their operations due to the fall in crude prices, leaving many structures idle."

Borr has secured the necessary funding for this acquisition through a private placement of equity securities.

The transaction is subject to execution of a definitive agreement, approval from the board of directors of both companies and other closing conditions. The deal is expected to close by the end of May.

Borr Drilling was founded last year by former executives of Seadrill. The company focuses on acquiring cheap assets as most rig firms reduced their operations due to the fall in crude prices, leaving many structures idle.

Borr has a fleet of two rigs, and will issue $800m in new shares to fund this acquisition.

Following this deal, Transocean will retain a fleet of nearly 50 larger rigs that specialises in deepwater exploration.