DIAMOND OFFSHORE FILES FOR CHAPTER 11 BANKRUPTCY

April 27, 2020

US offshore contract driller Diamond Offshore has filed for Chapter 11 Bankruptcy hit by debts of more than $2.6 billion in the wake of spreading COVID-19 pandemic, fierce oil price war and asset price declines. Diamond Offshore situation worsened recently after the company missed an interest payment of $500 million. The contract driller had $5.8 billion of assets and $2.6 billion of debt as of the end of 2019.
Diamond Offshore based in Katy. Texas, is a leader in offshore drilling, providing contract drilling services to the energy industry around the globe with a total fleet of 15 offshore drilling rigs, consisting of 11 semisubmersibles and four dynamically positioned drillships.
Diamond Offshore’s beginnings date from the mid-1960s when the Diamond M company was formed. In 1992, Diamond M Corporation acquired ODECO from Murphy Oil for $358 million. Diamond M Corp. briefly changed its name to Diamond M-ODECO Drilling Inc. before becoming Diamond Offshore Drilling, Inc. in 1993.
In May 2012, the company ordered its first ultra-deepwater drillship from from Hyunday Heavy Indutries in South Korea for $655 million.
(Source: Diamond Offshore/FT/Bloomberg/FP – Image: Diamond Offshore)