The Strategist

US Whiting Petroleum falls victim to Saudi-Russian oil prices war

04/02/2020 - 04:54

Whiting Petroleum Corp, an American drilling company, said on Wednesday that it intends to file for bankruptcy protection under the bankruptcy law, writes Dow Jones.

Whiting Petroleum is one of the largest companies that do hydraulic fracturing needed in shale oil production in the Bakken province. The company is the first victim of the oil crisis.

Under article 11 (bankruptcy law), the company will declare an agreement with creditors to refinance more than $ 2.2 billion of debt by replacing all of its debt with 97% of new shares. The company has about $ 585 million in accounts, and will continue to operate without failures.

As reasons for the planned bankruptcy, Whiting Petroleum pointed to low oil and gas prices and uncertainty over the new coronavirus and the Saudi-Russian oil price war.