Borr Drilling takes over Paragon Offshore to create $3.57 billion MODU fleet

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

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

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 mil 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.