The rigs are currently being built by Keppel FELS to the KFELS B class designs. The price for the rigs excludes any down payments made by the original owners.

The agreement will come into effect after Borr Drilling meets certain conditions, including raising sufficient funds, and entering into relevant sales and purchase agreements for the individual rigs.

Keppel O&M CEO Chris Ong said: “The agreement with Borr Drilling demonstrates that rig owners continue to look for reliable, high quality rigs, such as the KFELS B Class, to maximize efficiency and productivity.

“This is a win-win agreement for all parties and enables Keppel O&M to further improve our cashflow, minimize the holding risks of the projects, and clear several of the deferred orders.

“We look forward to providing Borr Drilling with another five premium, safe and cost-efficient rigs and continuing our strong partnership.”

Borr Drilling will pay the first installment of $288m within 20 business days of the agreement coming into effect.

The remaining amounts will be payable within five years from the date of delivery of each rig, on a seller’s credit with interest at market rates.

The rigs will be delivered from the fourth quarter of 2019 to the fourth quarter of 2020. One rig will be delivered in 2019 and four rigs in 2020.

Borr Drilling CEO Svend Anton Maier said: “We are pleased to be getting another five high quality jackup rigs from Keppel FELS on top of the five we acquired earlier.

“Our partnership with Keppel is crucial as it enables us to provide the market with the latest in jackup rig technology, safety and operability.

“This is an opportune time for us to grow our fleet of highly capable jackup rigs as the market is showing signs of recovery from the bottom of the business cycle.”

Keppel O&M is a wholly-owned company of Keppel Corporation.