Borr Drilling Ltd 6-K, filed Jun 16, 2020
Borr Drilling Ltd (BORR)
6-K
2020-06-16
For: 2020-06-16
View Original
Added on
April 10, 2026
About this 6-K
Borr Drilling Ltd filed this 6-K on June 16, 2020.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
June 16, 2020
Commission File Number 001-39007
Borr Drilling Limited
S. E. Pearman Building
2nd Floor 9 Par-la-Ville Road
Hamilton HM11
Bermuda
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
| Form 20-F ☒ | Form 40-F ☐ |
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
| Yes ☐ | No ☒ |
If ‘‘Yes’’ is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
Exhibits
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Press Release, dated June 15, 2020: Borr Drilling Files Annual Report on Form 20-F for the Year Ended December 31, 2019 with the U.S. Securities and Exchange Commission
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Corporate Governance Report 2019
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Borr Drilling Sustainability Report 2019
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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BORR DRILLING LIMITED
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Date: June 16, 2020
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By:
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/s/ Svend Anton Maier
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Name:
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Svend Anton Maier
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Title:
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Chief Executive Officer
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Exhibit 99.1
Borr Drilling Limited files its 2019 Annual Report on Form 20-F and releases its 2019 Sustainability and Corporate Governance Reports
Hamilton, Bermuda, June 15, 2020. Borr Drilling Limited (the “Company”) (NYSE: BORR, OSE: BDRILL) has on June 15, 2020 filed its Annual Report on Form 20-F for the Year Ended December 31, 2019 (the "2019 Annual Report"). Simultaneously, the
Company has also released its 2019 Sustainability Report and Corporate Governance report. The reports are enclosed in this release.
The Company’s 2019 Annual Report can be downloaded from the SEC's website (www.sec.gov) and is also available on the Company’s website (www.borrdrilling.com). Hard copies of the Company's 2019 Annual Report can be ordered, free of charge, upon
request by writing to us at:
Borr Drilling Limited
S.E. Pearman Building, 2nd Fl,
9 Par-la-Ville Road,
Hamilton HM11,
Bermuda
Or by email to: ir@borrdrilling.com
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Forward-Looking Statements
This press release and the reports referenced therein contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements may be preceded by, followed by or include the words "may", “believe”, “continue”, “estimate”, “expect”, “intends”, “should”, "plan", “will” or similar expressions. These statements include statements relating to
our corporate strategy and corporate governance goals, including statements relating to the capital structure of the Company and management of associated risks, share price and dividend distribution and risk management and internal control, the
impact of COVID-19, key sustainability initiatives for 2020 to 2022, our sustainability strategy and goals, milestones, ambitions and plans including those relating to workforce, safety, governance, sustainable supply chain development and the
environment and other non-historical statements. These forward-looking statements are based on information available to us as of the date they were made and involve a number of risks and uncertainties which may cause them to turn out to be wrong,
including risks related to our business and industry and other factors described in the section entitled “Risk Factors” in the Company’s Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission. Such risks,
uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward-looking statements included herein. We do not undertake any obligation to update
forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Exhibit 99.2
CORPORATE GOVERNANCE REPORT 2019
Borr Drilling Limited (the “Company”) is organized and existing under the laws of Bermuda and the corporate governance principles applicable to it are set out in the Bermuda
Companies Act 1981, the Company’s bye-laws (the "Bye-Laws") and its memorandum of association.
The Company is listed on the New York Stock Exchange (“NYSE”) but as a foreign private issuer, the Company may follow home country corporate
governance practices instead of certain of NYSE’s requirements. Pursuant to Section 303.A.11 of the NYSE Listed Company Manual, we provide a statement of the significant differences between our corporate governance practices and the NYSE
standards applicable to listed U.S. companies. This is available in our Annual Report on Form 20-F
The Company is also listed on the Oslo Stock Exchange (the "OSE"), and is therefore subject to Norwegian Securities Trading Act and the Norwegian Stock Exchange Regulations,
both of which are relevant to the Company’s corporate governance.
Implementation and Reporting on Corporate Governance
Responsibility for the overall corporate governance policy of the Company sits with the Board of Directors (the “Board”).
In defining this policy, the Board has observed the requirements set out in applicable laws, relevant recommendations and specific requirements arising from the Company's business activities. The Company recognises
that the Norwegian Code of Practice for Corporate Governance of 17 October 2018 (available at www.nues.no, the "Code") represents an important standard
and promotes principles aimed at strengthening confidence among shareholders of OSE listed companies. Most of the principles and recommendations in the Code are included in the Company's corporate governance policy. There are, however, some
areas where the Company's governance principles differ from those of the Code, primarily due to differences between the Bermuda Companies Act and/or the Bye-Laws and the Norwegian Public Limited Companies Act. Adherence to the Code is based on
the principle that companies comply or explain why it has chosen an alternative approach. We comply with the Code unless specifically stated below.
The Board has codified certain corporate governance principles in a "Code of Conduct," which emphasises our zero tolerance approach to corruption and sets out the standards of ethics and good business practice
which we require our employees, consultants and others working in the Company and its subsidiaries (the "Borr Group") to adhere to.
The Code of Conduct and the Company’s Corporate Governance Guidelines are available on the Company's website.
Business
The Company’s memorandum of association describes the Company’s objects for which the Company was formed as unrestricted. This deviates from the recommendation in the Code that the business should be clearly
described but it meets the requirements of the Bermuda Companies Act.
As recommended by the Code, the Board leads the Company’s strategic planning and makes decisions which form a basis for the Company’ executive management to implement clear objectives, strategies and risk profiles
for the business activities of the Company to create value for shareholders. These objectives, strategies and risk profiles are communicated to the market and reviewed regularly, and at least annually, by the Board.
Equity and Dividends
The Board strives to optimize the capital structure of the Company and strike an optimal balance between debt and equity, assessing and managing the risks associated with these. The Company is not required to call
a general meeting to report on the Company’s financial condition or measures proposed to rectify any fall in equity value which differs from the Norwegian Public Limited Company’s Act (“ASAL”) (which does
not apply to the Company).
Under the Bye-Laws, the Board may declare dividends and distributions without the approval of the shareholders in general meetings. This differs from the recommendation in the Code that such a mandate be explained
and be based on the company’s dividend policy.
The Company’s aim is to provide its shareholders with a competitive return on their investment through a positive development in the price of the Company’s shares and, when the Company’s profits so allow, dividends
to its shareholders.
The Company’s shareholders may, by way of a resolution in a general meeting of all shareholders (a “General Meeting”) increase the Company’s authorized share capital, reduce
the authorized share capital (by reducing the number of unissued but authorized shares) and increase or reduce the issued share capital. The procedures for this are set out in the Bye-Laws and the Bermuda Companies Act.
The Board has, under Bermuda law, wide powers to issue authorized but unissued shares in the Company. The Board is also authorized in the Bye-Laws to purchase the Company’s shares and hold these in treasury. These
powers are not restricted to any specific purposes nor to a specific period as the Code recommends.
Equitable treatment of shareholders and transactions with close associates
The Company has only one class of shares. Each share carries one vote. All shares have equal rights. All shares have a right to participate in General Meetings.
Under the Bermuda Companies Act, no shareholder has a pre-emptive right to subscribe for new shares in a limited company unless (and only to the extent that) the right is expressly granted to the shareholder under
the bye-laws of such company or under any contract between the shareholder and such company. The Bye-Laws do not provide for pre-emptive rights.
The Board will only transact in the Company’s shares at their market value (as reflected in the share price quoted on the OSE or the NYSE from time to time).
Members of the Board (each a "Director") and the Company's senior management shall notify the Board if they have any material interest, whether direct or indirect, in any
transaction which the Borr Group intends to conclude.
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Following these guidelines, any Directors and/or member of the Company's senior management who have an interest in any such transaction shall always refrain from participating in the discussions on whether to conclude such transaction or not in
the relevant corporate bodies in the Borr Group.
Further, the Board shall always consider whether it is appropriate to obtain an independent third-party valuation of the object of any material transaction between the Company and any of its close associates.
Shares and Negotiability
The Bye-Laws requires the Board to decline to register a transfer of the Company's shares in a situation where the Board is of the opinion that such transfer might breach any applicable law or requirement of any
authority or stock exchange until it has received such evidence as it needs to satisfy itself that no such breach will occur.
Save as provided above, the Company does not limit any party's ability to own, trade or vote for shares in the Company.
General meetings
The Code requires that the Board should ensure that the company’s shareholders can participate in the General Meeting and the commentary makes reference to the provisions of ASAL which require notice of general
meetings, (including any supporting documents for the resolutions to be considered therein) be made available on the Company's website no later than 21 days prior to the date of the General Meeting.
The Bye-Laws reflect Bermuda law which permits notice to be given no less than 7 days (excluding the day on which the notice is served and the day on which the General Meeting to which it relates is to be held) prior
to a General Meeting.
The Board aspires to maintain good relations with its shareholders and potential investors in its shares, and to have an investor relation policy which complies with the OSE's Code of Practice for Investor Relations
and the requirements of the NYSE.
The Board seeks to ensure that as many shareholders as possible are able to participate in the General Meetings. To achieve a high rate of shareholder attendance therein the Company:
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publicly announces, the place, date and time of each General Meeting as early as possible, and at the latest seven days in advance thereof;
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publicly announces the record date for each General Meeting at least ten days in advance thereof;
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provides sufficient supporting documentation for any resolution proposed to be made at a General Meeting in order for the shareholders to prepare;
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ensures that any registration deadline is set as close to the General Meeting as possible;
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ensures that the shareholders may vote for each individual matter, including on each individual candidate nominated for election or re-election to the Board;
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provides a proxy form to give shareholders who cannot meet in person the opportunity to vote;
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makes Directors and the Chairman of the Nominating and Corporate Governance Committee available for attendance at the General Meeting.
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Nominating and Corporate Governance Committee
The Code recommends that the Company has a nomination committee and, although the Company is not obliged by Bermuda law to establish a nomination committee, it has done so and
details of its members are available on our website. This is not laid down in the Bye-Laws. It is the Board and not the General Meeting which agrees the charter setting out the duties of the nomination committee and which elects the committee and
remuneration of the nomination committee. This deviates from the Code.
Board: composition and independence
We consider that the composition of the Board is such that it attends to the common interests of all shareholders and meets the company’s need for expertise, capacity and diversity while seeking a group which can
function effectively as a collegiate body.
Our Board is structured to ensure that it can operate independently of any special interests and the majority of our board is independent of our executive management team and the Company’s material business contacts.
More than two of the members of the board are independent of the company’s main shareholders.
Our Board does not typically include any executive directors but our Chairman has taken an executive role for a temporary period to provide support to the management team on a part-time basis at a critical phase in the
development of the Company. This appointment was approved by the Board. No Director is employed by the Borr Group.
The Board will, in accordance with normal procedures for Bermuda companies, elect its chairman. This differs from the recommendation in the Code that the General Meeting shall elect the chairman of the Board.
The Directors shall, subject to applicable law and the Bye-Laws, hold office until the first General Meeting following such Director’s election. The Directors may be re-elected.
Directors stand for re-election at each annual general meeting but there is no limit on the term of office. This is a deviation from the Code.
We include details of the qualifications and experience of our directors in our annual report filed on form 20-F as well as identifying whether they are independent. It is the view of the Board that at least two of
its Directors are independent of the Company’s main shareholders. Further, it is the view of the Board that a majority of the Directors are independent of the Borr Group's senior managers and main business partners. Details of the qualifications and
experience the Directors are also available on the Company’s website
We do not provide a detailed record of attendance at board meetings and this is a deviation from the recommendation of the Code.
Directors are encouraged but not required to own shares in the Company.
According to the Bye-Laws the Board shall consist of not less than two Directors. Currently the Board consists of seven Directors.
The work of the Board
The Code recommends that the Board develops and approves written guidelines for its own work as well as the work of the Borr Group's senior managers with particular emphasis on establishing clear internal allocation of
responsibilities and duties.
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The Bermuda Companies Act does not require the Board to prepare such guidelines. The Board is of the opinion that there are no reasons to issue such guidelines at present.
In accordance with Bermuda law, the Board ensures that members of the Board and executive personnel make the company aware of any material interests that they may have in items to be considered by the Board.
In order to ensure a more independent consideration of matters of a material nature in which the Chairman of the Board is, or has been, personally involved, the board’s consideration of such matters will usually be
chaired by some other member of the Board.
The Company has an Audit Committee, a Nominating and Corporate Governance Committee and a Compensation Committee. The Board considers that all of the members of these Committees have relevant expertise and
experience and that they are independent of executive management and shareholders. Details are set out in the annual report and on the Company’s website.
The Board evaluates its performance and expertise of the directors on an annual basis.
Risk management and internal control
The Board is focused on ensuring that the Borr Group's business practices are sound and that adequate internal control routines are in place. The Board continuously assesses the possible consequences of and the
risks related to the Borr Group’s operations.
The Company is committed to protecting the health and safety of all of the Borr Group's employees and contractors in all their activities for the Borr Group and is committed to ensure generally accepted QHSE
principles are integrated in everything the Borr Group does.
The Board supervises the Company’s internal control systems. These covers both the Borr Group's operations and its guidelines for ethical conduct and social responsibility.
In addition, the Board supervises Management’s processes and controls governing the Internal Control over Financial Reporting, to ensure the accuracy and timeliness of Management’s reporting to shareholders and the
Market on matters pertaining to the Company’s primary financial statements (Statements of Operations, Balance Sheets and Statements of Cash Flows).
The Company was established in 2016 and has since that time experienced significant expansion, especially during 2018 when the company acquired Paragon Offshore Limited and shortly thereafter proceeded with a
rationalization program. This growth, combined with the loss of historically significant individuals and relationships in the legacy Paragon business, resulted in too few resources to adequately follow and maintain our accounting processes, and
constrained our ability to deploy additional capacity with which to address compliance with internal controls over financial reporting.
In connection with the audits of our consolidated financial statements as of and for the years ended December 31, 2017, 2018 and 2019, we and our independent registered public accounting firm identified a material
weakness in our internal control over financial reporting. If we fail to develop and maintain an effective system of internal control over financial reporting, we may be unable to accurately report our financial results or prevent fraud.
In accordance with reporting requirements, a “material weakness” is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a
material misstatement of our company’s annual or interim consolidated financial statements will not be prevented or detected on a timely basis. The material weakness identified relates to lack of sufficient competent financial reporting and
accounting personnel to prepare and review our consolidated financial statements and related disclosures in accordance with U.S. GAAP and financial reporting requirements. Neither we nor our independent registered public accounting firm
undertook a comprehensive assessment of our internal control for purposes of identifying and reporting any material weakness in our internal control over financial reporting. Had we performed a formal assessment of our internal control over
financial reporting or had our independent registered public accounting firm performed an audit of the effectiveness of our internal control over financial reporting, additional material weaknesses may have been identified.
To remedy our identified material weakness subsequent to December 31, 2019, we have undertaken further steps to strengthen our internal control over financial reporting, including (i) engaging external third
parties to assist with the implementation of our new internal control framework towards meeting the upcoming requirements of Sarbanes Oxley (“SOX”) section 404, as and when we are required to implement
such a framework, (ii) implementing new systems to mitigate inherent risks in the financial reporting cycle, (iii) hiring more qualified personnel to strengthen the financial reporting function and to improve the financial and systems control
framework, and (iv) implementing regular and continuous U.S. GAAP accounting and financial reporting training programs for our accounting and financial reporting personnel. This program of improvement will continue throughout 2020.
Remuneration of the Board
The remuneration of the Directors is set by the General Meeting. The Company may, on occasion, pay Directors their fee in the Company's shares and/or grant Directors options under the Company's share option scheme.
Section 11 of the Code requires that Directors should not take on specific assignments for the Company in addition to their appointment as Directors.
The Company will not refrain from engaging Directors for specific assignments for the Company if such engagement is considered beneficial to the Company. An example of this is the executive role of the Chairman as
noted above. This differs from the recommendation in the Code. However, such assignments will be disclosed to the Board and the Board shall approve the assignment, as well as the remuneration.
Remuneration of Executive Personnel
The remuneration of the Borr Group's Chief Executive Office and Chief Financial Officer is based on three components. The first component is each individual’s fixed salary. This is set based on the individual’s
position and responsibility and the international salary level for comparable positions and local compensation such as housing allowance and mandatory pension payments.
The second component is a variable, discretionary bonus. Bonuses will be granted based on the performance of the Borr Group as a whole and each individual in relation to targets set annually.
The third component is a share option scheme or other long term incentive programme which may be established by the Company where share options can be issued to senior managers in the Borr Group.
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The Code recommends that guidelines for the remuneration of executive personnel are prepared and approved by the General Meeting. Such guidelines should set forth an absolute limit to performance related
remuneration. The Borr Group's remuneration policy does not require such a procedure, nor does it contain any such limit. This differs from the recommendation in the Code.
The Bye-Laws permits the Board to issue share options to the Company's employees, including members of the Borr Group's senior management team, without requiring that the General Meeting approves the number of
options granted or the terms and conditions of such. In addition, the share option scheme is an incentive program.
Information and communications
The Company is committed to provide information on its financial situation, ongoing projects and other circumstances relevant for the valuation of the Company’s shares to the financial markets on a regular basis.
The Company is also committed to disclose all information necessary to assess the value of its share on its web site. Interested parties will find the Company’s latest news releases, financial calendar, company
presentations, share and shareholder information, information about analyst coverage and other relevant information here.
Such information may also be found on the website of the OSE (www.oslobors.no) and NYSE (www.nyse.com)
Information to the Company’s shareholders shall be published on the Company’s website at the same time as it is sent to the shareholders.
Take-overs
The Board has approved the following guidelines which will be applicable in the event a general offer is made for its shares.
In such an event, the Board will seek to ensure that the Company’s business activities are not disrupted unnecessarily. The Board will, furthermore, strive to ensure that shareholders are given sufficient
information and time to form a view of the terms of such offer.
The Board will not pass any resolutions with the intention of obstructing the completion of any take-over offer unless this is approved by the General Meeting following the announcement of such offer.
If a take-over offer is made, the Board will issue a statement on its merits in accordance with statutory requirements and the recommendations in the Code.
The Board will consider obtaining a valuation of the Company's equity capital from an independent expert if a take-over offer is made in order to provide guidance to its shareholders as to whether to accept such
offer or not.
Any transaction that is in effect a disposal of all of the Company's activities will be submitted to the General Meeting for its approval.
Auditor
The Audit Committee of the Board will, each year, agree a plan for the audit of the Borr Drilling Limited consolidated financial statements with its auditor. The Audit Committee will furthermore interact regularly
with the auditor within the scope of this plan.
The current incumbent auditors are PricewaterhouseCoopers LLP, 1 Harefield Road, Uxbridge Middlesex, UB8 1EX
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Exhibit 99.3
STARTINGOUR JOURNEY Sustainability
Report 2019
STARTINGOUR JOURNEY At Borr Drilling, we continuously pursue our goal of zero harm to people and
the environment, and operational excellence.With our modern fleet, we service our clients with new and innovative business models. We add to our offering sustainability and aim to be a leading sustainability service company in the oil and gas
sector. Our sustainability strategy aims to ensure our enterprise has a positive impact on society.Let’s start our sustainability journey. Together. Step by step.
4 5 TABLEOF CONTENT 568 Message from the CEO Operations Overview 2019Company Milestones &
Sustainability AmbitionGovernance People Safety EnvironmentPerformance Data Charity Work 101418222627 MESSAGE FROM THE CEOWhen I initiated our Sustainability Programme in 2019, nobody could have predicted the situation the whole world is
experiencing as I write this message. Covid-19 is having a direct impact on everyone globally. It is affecting the lives of all our personneland how we operate our businesses. I introduced our Sustainability Programme because I believed this
was the right thing to do; for the company and employees, for our children and for the future of the planet. This belief is unchanged and after the current Covid-19 crisis has passed, the requirements to move to a more sustainable world will
remain. I expect 2020 is going to be a very challenging year for all companies, including Borr Drilling. 2019 was a very exciting year for Borr Drilling. Let me share some highlights with you. First of all, we continued our strategy of
putting our premium rigs to work. We brought an additional eleven rigs into service in 2019, to reach a total of nineteen rigs contracted by the end of the year. Secondly, we launched our Americas region, with an initial focus on Mexico.
There we havebuilt a strong partnership with Schlumberger to provide innovative integrated services to our clients. Thirdly, we expanded in allother regions and moved our corporate offices to the UK. These achievements align with our vision
to be the leading offshore drilling company. As is the theme of this inaugural Sustainability Report, Borr Drilling has begun a journey. It is a journey to integrate sustainability into our business. It is important that we have started and
that we have taken the first steps on this path. Throughout 2020 and beyondwe will continue to build on these foundations, even during the Covid-19 crisis, so we will emerge a stronger company with a resolute sustainability strategy.I am
proud of this Sustainability Report and I hope you’ll enjoy learning about the hard work already in place and our ambition for the years to come.Svend Anton MaierCEO Borr Drilling
6 7 BORR
OPERATIONS 2019 4REGIONS 35 19 99.6%RIGS IN FLEET CONTRACTED RIGS* UTILIZATION BUILT TO MAKE A DIFFERENCEBorr Drilling is an international drillingcontractor that owns and operates jack-up rigs of modern and high-specification designs.We
provide drilling services to the oil and gas exploration and production industry worldwide in water depths up to approximately 400 feet. Our modern fleet of rigs and capable organisation will deliver safe and high quality drilling operations
to our customers. Combining a low cost base and a strong and experienced organisational culture with a unique capital structure, Borr Drilling is built to make a difference. CORPORATE STRATEGYBorr Drilling’s strategy is to build a
substantial fleet of jack-up rigs and establish itself asthe preferred provider of drilling services inhydrocarbon basins around the world. The Company currently operates a fleet of modern jack-up drilling rigs from yards such as Keppel FELS
and PPL Shipyard and is one of the largest premium jack-up companies globally – with the youngest fleet. ”BORR DRILLING´S AMBITION IS TO ACQUIRE AND OPERATE MODERN OFFSHORE DRILLING ASSETS.” MEA UAE - 2 rigs Malaysia - 1 rig
Vietnam - 2 rigsOfficeAbu DhabiBangkokHo Chi MinhKuala Lumpur AFRICA Nigeria - 4 rigs Gabon - 1 rigOfficeLagosPort HarcourtPort Gentil Singapore - 15 new build rigs in shipyardOfficeSingapore RIG
TRANSITION AberdeenLondon Abu Dhabi Villahermosa Lagos Singapore Corporate Office Regional OfficeOperational Support Office AMERICAS Mexico - 5 rigsOfficeVillahermosa NORTH
SEA UK - 2 rigs Netherlands - 2 rigsOfficeLondon & AberdeenAberdeenBeverwijk (NL) *Reflects status of company on 31-December-2019. Non-premium cold stacked rigs not shown on graphics. 16 Rigs operating and 3 rigs with
committed contracts.
Planned for 2020-2022 COMPANY MILESTONES & SUSTAINABILITY
AMBITION 9 MARCHSchlumbergerinvestment DECEMBERFirst rig starts contract - Frigg in Nigeria NOVEMBERPurchase of 2 premium jack-up rigs from Hercules Offshore MARCHPurchase of 10 existing and
5 Keppel newbuild jack-ups from Transocean OCTOBERPurchase of 9 premium jack-up rigs fromPPL Shipyard Singapore 2018 Corporate HQmoves to UK Silver ratingEcoVadis FirstSustainability Report B-rating from Carbon Disclosure
Project JANUARYSustainability Stakeholder Engagement Workshop 8 JUNEISO certification forCorporate HQ ISO 2019 MAYContract with Exxon inNigeria
commences Sustainable Development Goals Roadmap for further sustainability reporting GHG Emissions Reduction and Energy Management Governance Our ambition is to be a
sustainability leader among the offshore drilling community. To achieve this ambition, we have established a Sustainability Strategy and Action Plan. Our Sustainability Strategy focuses on three areas:Invest to reduce our environmental
impact and to increase our positive effect on societyEstablish and integrate sustainability into our way of doing businessIdentify opportunities for adaption to the energy transition Over the course of the following three years we will
implement the policies, programmes and actions to achieve this ambition.KEY INITIATIVES FOR 2020 TO 20221. Further development of the sustainability reporting structure. This year’s report is the start and we intend to further develop this in
the coming years, with an aim for alignment with the GRI Standard. 2. We conducted a Sustainability Stakeholder Engagement Workshop with senior manage- ment to identify which CSR topics are material for Borr Drilling. One of the outcomes of
the workshop was that Governance is an important CSR topic and that additional focus on it should be established. This can be initially noted in our dedicated Governance section in this report. The UN Sustainable Development Goals (SDG) are
an important international initiative to improve the wellbeing of people and theplanet by 2030. Borr Drilling wishes to contribute to this global programme. An assessment identified five SDGs where Borr Drilling can have most impact:SDG 3:
Good Health and Well BeingSDG 8: Decent Work and Economic GrowthSDG 12: Responsible Consumption and ProtectionSDG 13: Climate ActionSDG 14: Life Below WaterAs part of our Sustainability Action Plan we will develop programmes to align our
operations to support these SDGs. 4. GHG Emission reduction is key to matching our ambition to reduce impact on the environment. We will conduct assessments of opportunities to reduce engine usage through hybrid battery packs and energy
management systems. 2016 2017 ISO Certification for Abu Dhabi operations ISO APRILOdin - First rig to operate in Mexico First CDP disclosure MARCHAcquisition of ParagonOffshore MAYAcquired 5additional
rigs 2019 2020 JULYListing on New York Stock Exchange DECEMBERInitial Private Investment
GOVERNANCE Strong corporate governance and engagement of the Board of Directors is important for a
company to engage successfully with sustainability and therefore has been identified as a key aspect of Borr Drilling’s Sustainability Strategy.We are committed to operating with integrity and with respect for the laws, cultures and rights of
individuals in all the countries in which we operate.Our Code of Conduct outlines our business ethics expectations and acts as aguide for all our employees and management.Please see the company’s Annual Report and website for further
informationon corporate governance.
12 13 We see our supply chain as both an integral part of operations and an area where we can
influence sustainability and promote better Corporate Social Responsibility (CSR) practice. The principles of our Code of Conduct extend to our supply chain and we proactively assess the oversightof CSR efforts of our suppliers. In 2018, we
began Supplier CSR engagement by communicating our Supplier Procurement and Corporate Social Responsibility Policy with our vendors. In 2019, we made a strategic decision to further strengthen our engagement with oursuppliers. To assess our
vendors’ CSR performan- ce, we have partnered with EcoVadis, a leading independent CSR Business rating company. Also, we have further developed our relationship with TRACE International to utilize their expertise on Anti-bribery and
Corruption (ABC) Awareness training. Throughout 2020, we will further develop ourdue diligence within our supply chain using a three-phase approach. Firstly, all suppliers will be required to commit to adhering to our Code of Conduct and
they will receive ABC training by TRACE International. Secondly, our top suppliers,and higher CSR risk suppliers such as labour agents and waste management, will undergo EcoVadis screening. This enables us to independently evaluate their
management of key CSR issues and where we need to focus our resources to enhance our supply chain. Finally, if necessary, we will conduct physical audits of vendors. The EcoVadis assessment will include assessment of vendor’s modern slavery
due diligence, meet out MSHT Act commitment, and report their GHG emission, which is important for our own review of Scope 3 emission. DEVELOPING ASUSTAINABLE SUPPLY CHAIN OUR CODE OF CONDUCTOur Code of Conduct constitutes the platform upon
which all our policies and procedures are built and defines the high level of integrity and behaviour Borr Drilling expects of all employees. Established by the Board of Directors, our Code of Conduct applies to all employees, directors and
officers as well as third parties who work with us. The Code of Conduct outlines requirements in relation to prohibiting bribes and facilitation pay- ments, acceptable practice on gifts and hospitali- ty, avoiding Conflicts of Interest and
ensuring Fair Competition. The expectation of our employees on International Trade Control and Anti-Boycott Laws is also presented. In line with our Sustainability Strategy, it presents expectations on diversity and non-discrimination,
safety, security and environmental protection. A copy of our Code of Conduct can be found at www.borrdrilling.com. ANTI-CORRUPTIONBorr Drilling strictly prohibits payments of bribes or kickbacks of any kind, whether in dealings with
public officials or individuals in the private sector. Each contract, agreement, engagement and any written commitment entered into with partners, suppliers or agents contain provisions enforcing and promoting strict compliance to this policy
andrelevant Anti-Bribery and Anti-Corruption Regu- lations. We have partnered with TRACE International, a globally recognized anti-bribery business organization, to assist us with due diligence of our business partners, in particular
third-partyagents who perform marketing, shipping, freight forwarding, customs and visa services. LABOUR AND HUMAN RIGHTSWe respect the labour and human rights of our work force, business partners and the communities we operate in. Borr
Drilling recognizes human rights as established in the Universal Declaration on Human Rights and labour rights as set out in the International Labour Organisation’s conventions. Borr Drilling does not tolerate human rightsviolations. In
particular we prohibit child labour and only persons eighteen years or older may work on our rigs. ACTION AGAINST MODERN SLAVERY AND HUMAN TRAFFICKING (MSHT)We take our obligation under the UK Modern Slavery and Human Trafficking Act
seriously and are continually improving our engagement on this subject. For example, in 2019, key personnelobtained MSHT Awareness training. For 2020, the MSHT goals include supply chain assessment viathe EcoVadis platform (see box), expanded
trai- ning and commencement of an awareness raisingcampaign across the fleet. In addition to the UK MSHT Act requirements, Borr Drilling has policies and procedures in place to ensure compliance with the California Transparency in Supply
Chains Act and/or theU.S. Government’s Federal Acquisition Regulation on Ending Trafficking in Persons. WHISTLEBLOWER POLICYOur Whistleblower Policy provides guidelines for board members, management and employees as well as third parties
to report any breach of the Code of Conduct or violation of any applicable law in countries where we operate. Encouraging the voicing of any concerns, our Business Ethics Hotline consists of a telephone service and website operated by an
independent third party. In 2020, this service will be expanded to include communications in languages of all countrieswe operate in and websites in English, Spanishand French. Reports to the hotline are initially shared with our General
Counsel, who processes them in accordance with the Whistleblower Procedure. CYBER SECURITY MANAGEMENTAs with all businesses, we are conscious of phishing attacks and see cyber security threats as an enterprise risk. Therefore, to ensure we
maintain our capacity to operate we have part- nered with cyber security companies. All staff re- ceive IT security awareness training and ongoing awareness campaigns.
PEOPLE We believe in working together to grow our company. Our Vision is to be the leading
offshore drilling contractor. But even with our modern fleet of rigs, this ambition can only be realized with a strong and passionate workforce.We are building a company that centres at thewell-being of the crew. Training and development are
crucial, as having the best-trained people enables our company to be dynamic and adaptable.And importantly, although we are growing fast, we try to maintain that small knit family feeling. Our CEO and SVP Operations remain engaged with
operations, visiting working rigs to meet the crews, to receive feedback on their experience and to learn where improvements can be made.
16 WORKFORCE AND DIVERSITYOur fleet is growing and so is the company. The number of employees* has
significantly increased, from a workforce of 80 in 2017, to 1,243 in 2018 and now 1,934 people in 2019! This increase is due to the expansion of operations and our operating regions. Our culture is based around a diverse work force and a
belief in working together. We promote a workplace free from harassment and discrimination. Borr Drilling does not tolerate working conditions that conflict with international laws and practices, or our Code of Conduct. Our employees are
required to respect the personal dignity, privacy and rights of everyone they interact with during work and those affected by our business operations. Borr Drilling encourages gender diversity and is an equal opportunity employer. In 2019,
approximately 4.4% of the overall workforce were female. As a percentage of shore-based staff, women represent approximately 33% of office employees. Of the seven members of the board of directors, two are female. This has increased from zero
in 2018. While the percentage of females in our workforce may seem low compared to other industries,the offshore drilling industry has traditionallybeen dominated by men, primarily driven by the physically demanding nature of the work and
extended periods of work rotations. HIRING CREWS FROM WITHIN COUNTRY OF OPERATIONSAt Borr Drilling, we strongly believe in hiring and developing crew members that are local to the country of operations. While traditionally drilling
contractors relied on international expatriate crew to fill many positions, we have chosen a strategy of using local resources whenever available. The hiring and subsequent training of local crews allows Borr Drilling to give back to the
countries we are working in. It has a positive impact on local communities, as offshore sector jobs are often better paid in comparison to onshore based functions, so there is additional income for the crew's communities. It also reduces the
requirement for personnel to travel long distances and reduces the company's air travel carbon footprint. TRAINING AND COMPETENCY OF WORKFORCEBorr Drilling is committed to training its workforce to the highest level. By increasing the
competency base of our organization, we create confident and highly qualified staff. We are convinced that an appropriately trained and competent workforce is vital to ensuring operational excellence and safe operations. In 2019 we launched
Borr Competency Assessment Management System (BCAMS), to provide a structured competency system for all offshore personnel. Crews are provided coaching and training necessary to improve and maintain their competency at work. This program
enables all our offshore crews to demonstrate their competency and serves as a mechanism for career development and progression. BCAMS will be implemented throughout the fleet in 2020. CREW WELL-BEINGThe health and well-being of our crews
is crucial. All our rigs have recreation rooms and communal areas for crews to relax and unwind after a shift. There are opportunities to stay fit in the onboard gym and our chefs offer healthy options as well as a diverse range of local and
international cuisines. Borr Drilling partners with International SOS, a leading medical support services company, to provide medical services on the rigs. Each rig has a qualified health care professional and fully equipped clinic with
necessary medication and equipment to provide health care treatment to crews onboard. International SOS provides additional shore-based support when required. SECURITYThe safety and security of our crews is of utmost concern when travelling
within a country and to and from the rigs. Security assessment is carried out prior to and during operating in high risk areas. With the support of global security experts, country specific security plans are implemented. Where necessary, our
rigs are aligned to the InternationalShip and Port Facility Security (ISPS) Code. 17 20178020181,24320191,934 WORKFORCE *Workforce includes FTE and contractors. Refer
to Performance Data on Page 26 for additional information.
18 19 SAFETY At Borr Drilling safety is of paramount importance during all our operations and we
continuously pursue our goal of zero harm to people. To ensure a daily rhythm of safety, proactive measures are taken to prevent work related injuries and illnesses, including pre-shift meetings, task risk assessments, toolbox talks,Stop Work
Authority and Time-out for Safety.We continue to enhance our safety culture. In 2019 we provided our rigs with new tools to bring us to our goal of zero harm. We implemented nineIOGP’s Life-Saving Rules across the fleet and invested in
‘Comet’, a new Incident Investigation platform. We are also proud of transitioning our Safety Management System to ISO45001 and obtaining ISO45001 certification for our corporate office.
Since our first rig commenced operations in Nigeria in December 2017, over a dozen premium rigs have
gone into service. However, a rig without a crew is only steel and equipment. It is the crew’s teamwork and dedication that give the rig the heart and soul to make it a success. Therefore, much of our focus before the operations commence is
on aiding the new crew to become a team, a family. Across our fleet, all new crews actively participate in Safety Leadership Training (SLT) workshops.Operation and QHSE Departments join efforts to present SLT workshops, bringing together
management, core crews, client and third-partypersonnel in a relaxed onshore setting. Each two- day SLT workshop is tailormade to the rig, region and client requirements. The workshops focus on leadership, humanfactors and safe systems of
work, with delegates' participation encouraged throughout. New per- sonnel are introduced to the Borr Drilling culture through presentations from senior management and familiarization of the company management system and our processes. The
crews learn of our strong focus on safety, in particular, safesystems of work and Stop Work Authority. We are committed to empowering all personnel to do the right thing. Practical exercises assist with team building and continual team
involvement, and the SLT concludes with a fun rapid-fire quiz, closing comments and presentations. To ensure learnings are successfully transferred to the worksite (offshore), mentoring programmes are established and a full suite ofon-the-job
and e-learning training programs areimplemented offshore. 20 SAFETY LEADERSHIP TRAINING LTIF*TRIF* 2019 20180.91 0.622.12 1.55 KEY SAFETY METRICS *including all persons on board SAFETY SYSTEMSSafety starts before any drilling
operations be- gins. Prior to starting a new drilling campaign, close collaboration with the operator is under- taken, including Drilling Well on Paper (DWOP) and bridging documents workshops to ensure all safety hazards are identified and
appropriate mitigation is put in place. Throughout the well operation, safe systemsof work are followed, including task risk assess- ment, Stop Work Authority and behaviour-based safety systems. Our rig teams work with safety in mind, and
operations are based around manysafety measures; pre-shift safety meetings for the oncoming shift, team toolbox talks before starting tasks, weekly safety meetings for all the crew. SAFETY MONITORING AND PERFORMANCE INDICATORSTo provide
direct safety support to operations, a Safety Performance Coach is assigned to each rig and all regions have shore-based QHSE Managers and QHSE Advisors. The Corporate QHSE Depart- ment sets the strategy and provides high levelguidance and
system support. To monitor the safety performance, rig manage- ment performs daily HSE reviews and each month an HSE performance review is carried out by the corporate management team. Monthly performance reports are provided to the Board,
senior management and company personnel. The key safety statistics for 2019 are Lost Time Incident Frequency (LTIF) of 0.91 (compared to 0.62 in 2018) and Total Recordable Injury Frequency (TRIF) of 2.12 (compared to 1.55 in 2018). This
increase is reflected in the significant increase in operating rigs. In 2019 there was more than 100% increase in man hours and eight rigs came into operations. NEW INCIDENT INVESTIGATION PLATFORMAlthough our goal is to have zero harm to
our workforce, unplanned events do occur. To prevent reoccurrence, every incident and near miss is investigated to identify the root cause, and corrective actions are implemented. Lessonslearned from such incidents are shared across thefleet
through safety alerts. We implemented 'Comet', an industry leading investigation and root cause solution, across the business. Now all incidents, including HSE, security and asset, are investigated using the Comet platform. This provides
unity to the process and ensures that lessons learned are captured and shared across the company. EMERGENCY PREPAREDNESSEmergency response procedures and systems are in place at rig, region and corporate level. Frequent emergency response
exercises are conducted offshore to ensure robustness of the arrangements and the readiness of the crew. We have partnered with Restrata, a leading providerof emergency response, for coordination facilities. LIFE-SAVING RULES
IMPLEMENTATIONBased on industry insights, the International Association of Oil & Gas Producers (IOGP) has developed nine life-saving rules after identifying the leading cause of fatalities in the industry.These rules offer a clear, simple
and consistentmessage on how to reduce workplace risk. We see this shared approach to safety as a valuable tool to reach our target of zero harm. In 2019, Borr Drilling embraced the IOGP’s Life-Saving Rulesand integrated them within the
organization. We conducted a mapping of the rules with our own safety procedures, provided training to all personnel and rolled out an awareness campaignacross the fleet.
ENVIRONMENT Everyday, our offshore rigs operate in seas and oceans around the world, making us
very conscious of our environmental footprint. Therefore, we are committed to undertaking our operations in an environmentally safe manner, in order to lessen our impact on the environment.As an innovative company with a modern fleet, we are
always looking for ways to improve the efficiency of our operations and to reduce our impact on the environment. Our target is to have zero spills to sea. As we are keenly aware of the contribution to global GHG emissions, we are also
dedicated to reducing our air emissions.
25 At Borr Drilling, we continuously aim to lessen the air emissions from our operations. We are
especially focused on the reduction of Green- house Gases (GHG). We achieve this reduction by measuring, monitoring and mitigating the GHG emissions. All rigs record daily fuel usage and office electri- city usage is tracked. We collate this
information in our HSE Enterprise System and report on a monthly basis to management. Our emission calculations are based on the GHG Reporting Protocol methodology. Scope 1 emissi- ons are ‘Direct Emissions’ and the primary source is from
rig engines, with a small proportion (<1%) of refrigeration gas emissions from rig air conditi- oning units. Scope 2 emissions are Indirect Emissi- ons from electricity usage in our offices. The overall Carbon Emissions from Scope 1 and
Scope 2 is 150,784 tonnes CO2 eq in 2019. This is an increase of 42% from 2018 (106,218 tonneCO2 eq). The reason for this increase is the growth in operations, as there is a correlation between operational activity and carbon emissions. The
carbon intensity of our operations can be analysed based on carbon emitted per 1000 manhours worked. Based on this matric, in 2019 the intensity of our operations reduced, from32.65 tonnes CO2 eq in 2018 to 22.73 tonnes CO2 eq to 2019. This
indicates that while our absolute emissions increased by 42%, our relative GHG emissions reduced by 30%. The relative decrease results from efficiencies of scale and by having a modern fleet of new build rigs with more efficient engines. To
ensure validity of the data, the Scope 1 and Scope 2 GHG emissions are verified annually by an independent and CDP certified environmental consultancy. MITIGATION OPTIONSAs our operations are offshore in remote areas, and due to the mobile
nature of the rigs, it is not feasible to use renewable energy sources from grid connections. However, we are researchingthe usage of hybrid battery packs, the implemen- tation of Energy Management Plans and usingbiofuels. CDP
PARTICIPATIONThe Carbon Disclosure Project (CDP) is an inter- national non-government organization that provides a global disclosure system for companies to manage their environmental impact. For the second year running, Borr Drilling
participated in CDPs global GHG monitoring program. CDP rates a company on how well they manage their Carbon Emissions on a scale from D to A, with A being the best. In 2019, Borr Drilling scored a ‘B - Management’
rating. OTHER AIR EMISSIONSAll of the premium rigs in our fleet use Tier III engines, which means they are efficient at reducing Nitrogen Oxide (NOx) emissions. Also, our rig’s engines are certified for compliance with MARPOL
Annex V International Air Pollution Prevention.New low sulphur fuel (0.5%m/m sulphur) rules were introduced by the International MaritimeOrganization (IMO) in January 2020, so going forwards all our fleet will have lower sulphur oxides (SOx)
emission levels. GREENHOUSE GAS EMISSIONS: MEASURING, MONITORING AND MITIGATING ENVIRONMENTAL MANAGEMENTTo ensure our environmental management system matches both our internal expectations and that of our clients and regulators, all
operating areas and rigs adhere to the ISO 14001 standard. Our operations in the North Sea and Abu Dhabi are independently certified by DNV GL and in 2019 we extended our ISO 14001 certification to our corporate office. The key environmental
aspects for offshore operations are controlled liquid discharges to sea, emissions to air and waste generation, and the potential for spills to sea. To reduce environmental risk to levels as low as reasonably practicable, we have mapped the
processes around these key aspects and put in place stringent procedural controls and mechanical barrier systems. Compliance with IMO and International Convention for the Prevention of Pollution from Ships (MARPOL) regulations, such as the
International Oil Prevention Pollution Certificate, is adhered to. DISCHARGES AND SPILLS TO SEADeck Drainage Management Plans ensure our rigs have a robust system in place to prevent spillsto sea, including preventative maintenance and
mechanical barriers to contain all liquids on board. Accumulated water, generally from rain on decks, is treated in oily water separators and dischargedwithin permitted thresholds. Across the fleet we use environmentally friendly chemicals
when available, for example for rig wash and jacking greases. Borr Drilling has a target of zero spills to sea. We are committed to achieving this goal and have a policy of reporting all incidents, no matter the size. We thoroughly
investigate spills and put in place appropriate mitigation measures, with lessons learned shared across the fleet. Each rig has an IMO Shipboard Oil Pollution Emergency Plans (SOPEP) and rigs regularly perform spill response exercises to
ensure that if a spill did occur, all onboard and shore-based teams are prepared to act in a planned and suitable manner. In 2019, we had zero significant spills (i.e. a spill with a volume greater than 1 metric cube). Therewere two spills
to sea with volumes greater than 100 litres. The combined volume of spills to sea in 2019 was 399 litres. In 2018, there was one spill to seaof 445 litres. Spills > 1,000L (1 tonne) 0 0 Spill > 100L 2 1 Total Volume of
liquids spilled to sea (litres) 399 445 24 WASTE MANAGEMENTWe consider the generation of waste an impor- tant environmental aspect, which we address in our MARPOL Garbage Management Plans.All waste types are segregated and
backloaded to the shore for correct treatment and disposal at licensed waste facilities. Total GHG Emission (CO2e) (tonnes)Emission Intensity - GHG Emissions per 1,000 manhours (tonnes) 150,78422.73 2018106,21832.65 KEY ENVIRONMENTAL
METRICS2019
COLOPHON Concept, Text and Design Danielle Gruijs & Jacqueline Wissing, Springfish (NL)Wesley
Schulte, Intire (NL) PhotographyBorr Drilling Limited Print This sustainability report has been printed with linseed oil-basedbio-ink. More information?If you have any questions or comments concerning this Sustainability Report please
contact:Magnus Vaaler,Vice President of Treasury & IR mvaaler@borrdrilling.com+ 47 9 345 85 73 Corporate OfficeBorr Drilling Management (UK) Ltd. 20 North Audley StreetW1K 6LX London United Kingdom www.borrdrilling.com 26 27 CHARITY
WORK The drilling community has a long tradition of rig personnel being involved with charity drives and raising money for PERFORMANCE DATA Number of Workforce (Total) 1,934 1,243 Editorial and
Text Full time employees (FTE) 694 593 Mark Masterson, Borr Drilling Contracted 1,240 650 EMISSIONS TO AIR Carbon Dioxide (CO2) tonnes 147,427 102,799 projects in developing countries. This tradition has continued Methane
(CH4)Nitrous Oxide (N2O) tonnestonnes 381,990 261,362 in Borr Drilling. Crew members organize fund raising on their Sulphur Oxidies (SOx) tonnes 2,368 rigs and choose which charities they’d like to donate to. Opmeer, The Hague,
NL Total Greenhouse gas (GHG) emissions (CO2 Equivalent) tonnes 150,784 106,218 2019 2018 PEOPLE Female in Workforce (FTE & Contracted)Offshore Positions Onshore PositionsPercentage Females on Board of
Directors %%%% 4.413329 4.71380 SAFETY FatalitiesLost Time Injury Frequency (LTIF)Total Recordable Incident Frequency (TRIF) 00.912.12 00.621.55 ENVIRONMENTAL 1,376 Direct GHG emissions (scope 1 GHG
Protocol) tonnes 150,448 104,952 Indirect GHG emissions (scope 2 GHG Protocol) tonnes 336 1,266 otal Energy Consumption MWhMarine Gas Oil Used tonnesElectricity Usage MWh 550,11940,901875 385,06431,6642,852 T GHG
Emission IndicesEnergy Intensity - Total Revenue (per US dollar) 0.00045 0.00064 Worked Hours Intensity - tonnes CO2 eq per person 1000 hours work tonnes 22.73 32.65 ACCIDENTAL RELEASE TO SEA Total Reported Spills to
Sea 2 1 Spills > 1 M3Spill between 0.1 M3 and 1 M3 02 01 Total Volume of liquids spilled to sea litres 399 445 WASTE Total Waste tonnes 2,580 1,363 Total Hazardous tonnes 1,083 534 Total
Non-Hazardous tonnes 1,497 830 PEOPLEIncrease in headcount is due to increase in operations worldwide.Increase in percentage of females membersof Board of Directors is due to appointment of two women directors in 2019. Total num- ber of
board members is seven.SAFETYLTIF and TRIF calculated based on one million working hours and is based on all personnel on board.ENVIRONMENTALGHG EMISSIONSEnergy Intensity - Ratio of Total revenue and Total GHG emissions (Scope 1 and 2),
expressed in US dollars. Worked Hours Intensity – Ratio of Total number worked hours and Total GHG emissions (Scope 1 and 2), expressed as tonnes CO2 eq per 1000 hours worked.Adjustment to 2018 GHG emission figures. Figures presented in this
report include Paragon Offshore data from 1 January 2018 to date of purchase of Borr Drillingon 28 March 2018. Also, in 2018 the CO2 eq conversion factor used was for Gas Oil. Thishas been adjusted to Marine Gas Oil, which is the correct
reference type of fuel used on the vessels. 2019 GHG emissions also used Marine Gas Oil conversion factor.2019 Scope 3 Emissions is 43,671 tonnesCO2 eq. This includes Business flights (9,445 tonnes CO2 eq), fuel and electricity Well to Tank
(34,116 tonnes CO2 eq) and waste (110 tonnes CO2 eq). 2019 GHG emissions have been independently verified by CEMAsys AS, Oslo, Norway.GHG emissions are calculated in accordance with the GHG Protocol Corporate Accounting and International
Petroleum Industry Environ- mental Conservation Associations (IPIECA) Oil and Gas Industry Guidance on Voluntary Sustainability Reporting.The IPIECA Guidance sets the boundary of Drilling Contractor’s Scope 1 emissions as fuel burned on the
rig and refrigeration gas emissions. Emissions from flaring are outside the Drilling Contractor’s scope.The main source of air emissions arisesfrom combustion of fuel in the rig’s engines. ACCIDENTAL RELEASE TO SEAThis includes hydrocarbons
and operationalchemicals spills to sea during rig operations. This report includes forward looking statements, which do not reflect historical facts and may be identified by words such as "plan", "may", “believe”, “continue”,“estimate”,
“expect”, “intends”, “may”, “should”, “will” and similar expressions and include statements relating toour corporate strategy, the impact of COVID-19, key initiatives, our sustainability goals, milestones, ambitions and plans including those
relating to workforce, safety, governance and environment and other non-historical statements. Such forward-looking statements are subjectto risks, uncertainties, contingencies andother factors could cause actual events to differ materially
from the expectations expressed or implied by the forward- looking statements included herein, including risks related to our business and industry, the impact of the COVID-19 outbreak and other factors described in the section entitled
“Risk Factors” in our filings with the Securities and Exchange Commission. Such risks, uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed orimplied by the
forward-looking statements included herein. These forward-looking statements are made only as of the dateof this release. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future
events or otherwise. NOTES ON PERFORMANCE DATA A great example of this is on the Norve rig in Gabon, where rig personnel apply a novel approach to raising money. The rig has a pool table in the recreational area, where a weekly
poolchampionship takes place. To enter the championship the player contributes to a charity pot. The reward for winning is a small trophy and bragging rights for the week. All donated money goes to charity. Over the course of the year, a
sizable amountof money was raised and went to good causes in the local community, including a shelter for street children and a clinic.DISCLAIMER Rig crew Shopping for groceries for shelter
