Offshore drilling contractor Borr Drilling has secured a letter of award (LOA) for one of its jack-up drilling rigs from an undisclosed operator in Malaysia.
Borr Drilling said on Wednesday that the letter of award was given to the 2018-built premium jack-up drilling rig Gunnlod .
According to the company, the program is expected to start in the fourth quarter of 2021 in direct continuation of the rig’s current contract with an approximate duration of 105 days.
Borr Drilling added that the LOA would be converted into a contract shortly. The formal deal will maintain the rig contracted over the monsoon season in Southeast Asia and into the first quarter of 2022, when additional employment opportunities should be available for the rig. The rig owner has not revealed any further details about the deal.
The rig is currently under contract with Thailand’s PTTEP. The Gunnlod rig won the original deal with the company in the first half of 2020 . At the time of the contract award, the Gunnlod was stacked in Singapore.
The rig mobilised to Malaysia and started work in September 2020. The deal was supposed to run until March 2021. The contract also had extension options.
PTTEP exercised an option for the Gunnlod jack-up earlier this year. Under the option, the rig will continue to operate for the company from May 2021 to September 2021. Borr Drilling said at the time that the contract can be extended by four further optional wells, which would keep the rig active for the remainder of 2021.
In recent company news, Borr Drilling received a letter of award from an unnamed international oil company for additional work in Mexico.
The drilling program is expected to start in the second quarter of 2022 for a duration of approximately 150 days, adding revenues of $15.7 million.