USA oil company Diamond Offshore Drilling has filed for bankruptcy as oil prices crash

America’s Houston-based Diamond Offshore Drilling filed for bankruptcy yesterday as oil prices crash due to the coronavirus pandemic.

THE company has debts of more than €2.4 billion, and the news comes less than a fortnight after it missed an interest payment on €460 million worth of bonds.

In Chapter 11 filings lodged with Houston’s bankruptcy court, Diamond said conditions have worsened “precipitously in recent months,” citing a price war between OPEC and Russia and the Covid-19 pandemic.

About 2,500 jobs could be at stake at Diamond, according to Haynes & Boone law firm.

Diamond said it had taken “various actions” to sort its finances, but that Chapter 11 bankruptcy offered the best return to stakeholders.

Other oil and gas companies have also felt the pressure including Whiting Petroleum Company, a Denver-based shale oil producer listed on the New York Stock Exchange which filed for Chapter 11 on April 24.

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Tara Rippin

Tara Rippin is a reporter for Spain’s largest English-speaking newspaper, Euro Weekly News, and is responsible for the Costa Blanca region.
She has been in journalism for more than 20 years, having worked for local newspapers in the Midlands, UK, before relocating to Spain in 1990.
Since arriving, the mother-of-one has made her home on the Costa Blanca, while spending 18 months at the EWN head office in Fuengirola on the Costa del Sol.
She loves being part of a community that has a wonderful expat and Spanish mix, and strives to bring the latest and most relevant news to EWN’s loyal and valued readers.

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