Mexican regulator clears Borr JV's $262m rig purchase
Antitrust approval clears the way for a Borr Drilling joint venture to absorb five Mexican jack-up rigs from Paratus Energy Services, consolidating offshore drilling capacity in the region.
Paratus Energy Services has secured regulatory clearance from the Mexican Competition Authority to sell its Fontis Finance subsidiary's drilling assets. The buyer is a joint venture controlled by Borr Drilling and local firm CME.
The approval removes the primary obstacle for a transaction that will shift five jack-up rigs into the hands of BC Ventures, a 50/50 partnership. All five rigs are currently active in Mexican waters. The fleet consists of two Friede & Goldman JU-2000E design units and three LeTourneau Super 116-C design units.
The deal carries a total value of $262 million. At closing, the Borr and CME joint venture will contribute $25 million in cash. The remaining $237 million will be financed through a non-recourse seller’s credit.
Structuring the bulk of the payment as a non-recourse seller’s credit means Paratus will retain a financed stake in the assets rather than securing an all-cash exit. Originally announced in March 2026, the divestment is split into two inter-conditional transactions. CME is acquiring the Fontis Mexican operations directly for cash, while the Borr and CME acquisition vehicle is buying the Singaporean entities that own the physical rigs.
For Paratus, the sale concludes a lengthy restructuring of the Fontis portfolio following its separation from Seadrill. The Bermuda-based firm highlighted that it has already used this period to fully repay Fontis’ external financial debt. It also made significant progress on collecting outstanding receivables.
“Paratus is pleased to announce that it has received clearance from the board of commissioners of the Mexican Competition Authority to proceed with the completion of the transaction,” the company stated. Paratus noted that combining these rigs with a larger industry platform will allow them to compete more effectively.
For Borr Drilling, the acquisition delivers an immediate expansion of its Mexican footprint. By folding five active rigs into its joint venture with CME, Borr cements its long-term well construction presence in the country. The transaction allows Borr to scale its local operations without the lead time of acquiring assets on the open market.
The transaction remains subject to customary closing conditions. Completion is expected during the third quarter of 2026.
