Danger ahead for offshore services sector
Unmanageable debt and a shortage of work is wreaking havoc on company finances. Bruising maturities starting from next year could signal even more pain
Bankruptcies are starting to surge across the offshore oil services sector, with many high-profile names defaulting on their debt. London-based Valaris, the world’s largest offshore drilling contractor by fleet size, became the latest big-name casualty when it filed for bankruptcy on 19 August, joining UK rival Noble Corporation and US-based Diamond Offshore Drilling, which have both already succumbed to the economic downturn. And more bankruptcies are likely to follow. Offshore drilling contractors Transocean, Pacific Drilling and Seadrill are all in precarious positions and have highlighted either bankruptcy risk or the need for financial restructuring. “The offshore rig market is structur
Also in this section
14 May 2024
The former CEO of Pioneer, Scott Sheffield, has opened a can of worms through his association with OPEC+ and its market management strategy
13 May 2024
OPEC+ has huge amounts of spare capacity amid a tightening market, but nothing can be taken for granted given unclear economic trajectories and geopolitical unrest
13 May 2024
But optimism about island nation checked by competition around African upstream investment and history of false dawns
10 May 2024
The US’ contentious LNG permitting pause has prompted criticism from CEOs and wildly differing interpretations from politicians