Borr Drilling’s acquistion of Paragon Offshore will create a USD 3.57 billion MODU fleet.

Paragon Offshore own 30 vessels worth USD 94.68 million, with an additional 2 vessel bare boat chartered in. The average age of their fleet is 38 years.

Borr Drilling previously owned 26 MODUs worth USD 3.47 billion, with an average age of 6 years.

Charlie Hockless, VesselsValue’s Head of Offshore, states, “The acquisition of Paragon by Borr drilling was certainly unexpected. Borr made it clear during 2017 that they were aiming to become the premium Jack Up supplier, we did not expect them to start 2018 by purchasing a fleet of scrapping candidates.”

“That said, the reported USD 204 million backlog present on the Paragon fleet seems attractive, and the rigs will certainly have some residual scrap value. In my opinion though, the true value of the deal is what Paragon will bring Borr – an experienced drilling organisation which will cement Borr’s market position going forward,” adds Hockless.

Tags: Borr Drilling Limited, Paragon Offshore, VesselsValue