SembMarine to proceed with US$1.3 billion sale of rigs to Borr Drilling

SEMBCORP Marine (SembMarine) will proceed with a US$1.3 billion sale of nine jackup drilling rigs to Borr Drilling after the conditions for the contract were met.

The sale, carried out by SembMarine's wholly owned subsidiary PPL Shipyard, will also include a market-based fee, which is calculated based on an uplift in value of the rigs sold.

The nine Pacific Class 400 rigs comprise six rigs from contracts that had been terminated with original customers and three rigs currently under various stages of construction completion.

Excluding all interest and the market fee payable by Borr Drilling, this transaction will result in a loss of about S$15 million, but will "significantly improve the liquidity position of the company," SembMarine said.