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Oil Crisis – On Sunday, the American Diamond Offshore Drilling filed for creditor protection in the U.S. as it faced significant financial difficulties, affecting its subsidiary in Brazil, Diamond Offshore Brazil. Petrobras Halts Rigs in Bahia and Sergipe, 550 Oil Workers Laid Off
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The American company operates 15 rigs (11 semisubmersible and four drillships) working for Hess, Occidental, Petrobras, and BP.
Marc Edwards, President and CEO, said: “After careful and diligent consideration of our financial alternatives, the Board of Directors and management, along with our advisors, concluded that the best path forward for Diamond and its stakeholders was to seek creditor protection. With this process, we aim to restructure our balance sheet to achieve a sustainable level of debt to reposition the business for long-term success.”
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Diamond Offshore Drilling has two rigs chartered by Petrobras: the Ocean Valor (photo) and the Ocean Courage, which are currently allocated in the Santos Basin.
The expectation is that one of them will be in the Berbigão Field by July and the other in the Búzios Field by the end of the year. The recovery, in addition to the subsidiary in Brazil, includes twelve other companies spread across the globe.
Oil Crisis
The global crisis is expected to lead to more suspensions of activity in the offshore sector at a time when oil producers are struggling with an oversupply and very limited demand – a situation worsened by the COVID-19 pandemic.
In the U.S., the number of active oil rigs fell to 378 last week, with 60 shutting down during that period, according to data from Baker Hughes. This is a decrease of 53% compared to the same week last year.
In early April, Whiting Petroleum also sought creditor protection under U.S. bankruptcy law, becoming the first major independent shale oil producer to succumb to the drop in industry prices.
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