According to sources, Angola’s liquefied natural gas (LNG) export plant was experiencing fresh delays in raising production and shipping cargo. Shareholders of the plant include Chevron (36.4%), Angolan state-owned oil firm Sonangol (22.8%) whilst other stakeholders include Total, BP and ENI.
According to Chervron’s spokesman, the plant, which had been shut since April 2014 due to construction errors and difficulties faced whilst handling feed gas supplies, had re-started operations in January 2016.
Further, it was expected that first cargo would be loaded on 15 May 2016, followed by a supply tender in June. Given the current situation, both outcomes have been postponed temporarily. Sources expected production to commence by the end of May 2016 and first cargo to be shipped in June.
The Sonangol Sambizanga LNG tanker, was currently moored at one Angola LNG jetty, and was only conducting tests, not loading supply. After producing a limited number of cargoes, Angola LNG will then be shut down again for additional testing.
Previously, traders had initially expected the plant to produce and export production output by April 2016.
Canadia oil and gas explorer Pacific Exploration & Production Corp. announced that the company and certain of its subsidiaries filed for creditor protection in Colombia under law 1116 whilst it implements its restructuring plan.
The company has entered into negotiations with lenders which include its bondholders and Catalyst Capital.
Operations of the company are expected to continue normally whilst the company undergoes restructuring.
During the course of restructuring, the company has ensured payment of dues to employees, suppliers and trade partners.
The company’s plan of restructuring has received support from creditors holding approximately 68% of the aggregate principal amount of its debt.
Source: Company Press Release
Bermuda-based offshore drilling rig provider Seadrill Ltd. hired Houlihan Lokey Inc. and Morgan Stanley to advise it on restructuring its debt worth $11bn. The process is expected to gain traction by June 2016.
According to sources, the company might opt for a debt-to-equity swap and a subsequent equity infusion of $1bn.
Seadrill, which provides rig services to upstream oil and gas companies, has seen a decline in its revenue as its clients have cut capex/drilling budgets. The company has seen declining day rates and contract expiry on some of its vessels.
Source: Zacks Investment Research