Monday, November 02, 2020 9:31:09 PM
Offshore drilling contractor seeks to eliminate $1.1 billion in debt
2 November 2020 7:04 GMT UPDATED 2 November 2020 14:23 GMT
By Jennifer Lynn Presley in Houston
Luxembourg-registered offshore drilling contractor Pacific Drilling on Friday made a Chapter 11 bankruptcy filing in the US. The company entered into a restructuring support agreement with a group of its largest debt holders that will wipe out $1.1 billion in debt in exchange for new equity in the reorganised company.
With seven high-specification drillships in its fleet, Pacific Drilling said that it intends to continue operations during the proceedings. This is likely welcome news to US independent Murphy Oil after having awarded the Pacific Drilling drillship Pacific Sharav a 10-well contract in the US Gulf of Mexico in July.
Drilling is expected to start in the second quarter of 2021. The $180,000/day contract includes five option wells.
The contractor has one rig in the yard and the remaining five stacked, according to UK-based broker Clarksons Research.
The company reported that it expects to emerge by year-end with access to $80 million in new capital in the form of an exit facility and $100 million in cash and cash equivalents.
2 November 2020 7:04 GMT UPDATED 2 November 2020 14:23 GMT
By Jennifer Lynn Presley in Houston
Luxembourg-registered offshore drilling contractor Pacific Drilling on Friday made a Chapter 11 bankruptcy filing in the US. The company entered into a restructuring support agreement with a group of its largest debt holders that will wipe out $1.1 billion in debt in exchange for new equity in the reorganised company.
With seven high-specification drillships in its fleet, Pacific Drilling said that it intends to continue operations during the proceedings. This is likely welcome news to US independent Murphy Oil after having awarded the Pacific Drilling drillship Pacific Sharav a 10-well contract in the US Gulf of Mexico in July.
Drilling is expected to start in the second quarter of 2021. The $180,000/day contract includes five option wells.
The contractor has one rig in the yard and the remaining five stacked, according to UK-based broker Clarksons Research.
The company reported that it expects to emerge by year-end with access to $80 million in new capital in the form of an exit facility and $100 million in cash and cash equivalents.
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