Diamond Offshore Files for Bankruptcy

Alwyn Scott
Monday, April 27, 2020

Diamond Offshore Drilling Inc filed for bankruptcy protection in Texas on Sunday, after the company recently skipped making an interest payment and said it had retained restructuring advisers.

The Houston-based contract drilling company's filing, one of 15 of its group companies seeking protection under Chapter 11, said day rates and demand for its services had "worsened precipitously" this year amid a "price war" between OPEC and Russia and the steep drop in oil demand caused by the coronavirus pandemic.

The company has significant operations in the Gulf of Mexico.

The filing comes as the five biggest U.S. and European firms have cut spending an average of 23% in response to the drop in oil demand caused by the coronavirus pandemic. The companies are Exxon Mobil Corp, Royal Dutch Shell BP PLC , Total and Chevron Corp.

Global spending on oilfield equipment and services is forecast to fall 21% this year to its lowest level since 2005. Oil futures prices last week closed below $0 for the first time in history.

Chevron, BP, and others have been reducing deepwater drilling projects, including the U.S. Gulf of Mexico, where some of Diamond's drilling rigs are located.

Loews Corp was Diamond Offshore's largest shareholder, with 53% as of April 3, according to Refinitiv.

Diamond had recently drawn $400 million under a revolving credit facility. But it said "the financial and operational conditions of the Diamond Offshore Group Companies have continued to deteriorate in the weeks following such responses."

Diamond Offshore Drilling listed Bank of New York Mellon Corp as by far its largest creditor, with a combined $2 billion in claims. The next largest creditor was National Oilwell Varco Inc, with about $6.2 million in claims.

The company had about 2,500 workers, including international crew furnished through independent contractors, as of the end of 2019. (Reporting by Alwyn Scott; Editing by Peter Cooney)


Categories: Finance Energy Offshore Energy Drilling Industry News Activity North America Rig U.S.

Related Stories

Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal

Seatrium Engages Axess Group to Clear FPSOs for Brazil Deployment

Dutch Contractor Completes Malaysia’s Largest 'Rig-to-Reef' Decom Project

CNOOC Finds Oil and Gas in South China Sea

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

Turkey Discovers New Black Sea Gas Reserve

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Current News

Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal

Seatrium Engages Axess Group to Clear FPSOs for Brazil Deployment

Inpex Picks FEED Contractors for Abadi LNG Onshore Plant

Inpex Kicks Off FEED Work for Abadi LNG Scheme Offshore Indonesia

ADNOC Signs Long-Term LNG Deal with Hindustan Petroleum Corporation

Sapura Energy Rebrands to Vantris Energy

BP, ONGC, Reliance Industries Ink Deal for Offshore Exploration in India

Allseas-Boskalis Consortium Bags $1.4B Offshore Gas Pipeline Job in Taiwan

CNOOC Brings New Offshore Gas Field On Stream

Yinson, PTSC Get $600M Contract for Vietnam-Bound FSO

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com