OSLO, May 15 (Reuters) - Norway's Borr Drilling plans to buy five new jack-up oil drilling rigs from an Asian shipyard for a total of $720 million, the company said on Tuesday.
The company, founded by Norwegian investor Tor Olav Troeim and backed by oil service firm Schlumberger, said it would issue a $350 million convertible bond to help fund the purchase.
Borr will pay an upfront payment of $288 million, with remaining amounts paid on delivery of each rig, the first of which will be delivered in the fourth-quarter 2019.
The company has grown quickly since its founding in 2016 via a series of acquisitions, focusing on jack-up rigs that are suitable to drill in shallow waters, such as in the Middle East.
The latest deal will bring the company's total fleet to 29 rigs, including those under construction.
Borr Drilling competes in the jack-up market with firms such as Shelf Drilling, Ensco N> and Rowan.
Schlumberger, the world's largest oil service company, is the largest shareholder in Borr Drilling with 14.4 percent. Troeim, who is also Borr's chairman, has 8 percent. (Reporting by Nerijus Adomaitis Editing by Edmund Blair)