Diamond Offshore Drilling Files For Bankruptcy As Oil Prices Crash

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Oil prices continue to suffer, following the historic negative collapse a week ago. This crisis prompted Diamond Offshore Drilling Inc., a rig contractor stake held by Loews Corp., to file for Chapter 11 bankruptcy.

The petition, which was filed in Bankruptcy Court for the Southern District of Texas, lists $5.8 billion of assets and $2.6 billion of debt citing year-end 2019 data. Diamond Offshore also claims to possess $434.9 million in cash, Bloomberg reported on April 27th.

The Diamond Offshore company operated by providing contract drilling services to the energy industry. It was known for its unique floater drilling rigs which were notorious for the ability to reach sea depths of 10 thousand ft and more. 

However, the production of offshore oil became too expensive to survive the current crisis. Five biggest Western companies — Exxon Mobil Corp, Royal Dutch Shell BP PLC, Total and Chevron Corp — have cut spending on an average of 23% following the COVID-19 era’s drop in oil demand, reports Reuters.

The Diamond Offshore representatives also listed the price conflict between OPEC and Russia as one of the factors that had worsened their business “precipitously”. 

In 2019 the driller had 15 offshore rigs globally, with a major presence in the Gulf of Mexico, and about 2,500 employees.

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Christopher is a London-based Political Editor for World News Tribune. He knows what your local politician is up to. A meticulous perfectionist, Christopher beat dyslexia at the age of 15 and declared that now he was now obligated to have a career in writing. During his sophomore year, he was already contributing front-page stories to The Evening Lantern. Christopher has always chased the truth in its rawest form — that’s why covering politics has been such a desirable challenge. After studying Journalism and Politics in his native Essex County, UK, Christopher moved to London and began to build his career with the most effective jump-start: by working at a coffee shop in The City. It truly paid off. Thanks to studying the local media scene through his customers, Christopher moved to freelance journalism, effectively gaining recognition for his International Affairs coverage. He still lives in London and is still able to make a wickedly good cup of coffee. Email:preston@worldnewstribune.com

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