US, WASHINGTON (ORDO NEWS) — Whiting Petroleum cited low oil prices as the main reason for the bankruptcy due to the war unfolding between Russia and Saudi Arabia.
Bankruptcy was announced on April 1 by the largest American drilling company, Whiting Petroleum Corp. The procedure will begin shortly.
The main reason for the bankruptcy of the shale oil company calls low fuel prices due to the war unfolding between Russia and Saudi Arabia.
In addition, falling gas prices, the coronavirus pandemic, and the disruption of the OPEC + deal have affected Whiting Petroleum’s financial health, the company said.
It is noted that the management of Whiting Petroleum intends to carry out financial restructuring.
“The company has more than $ 585 million on its balance sheet, it will continue to operate normally without interference to suppliers, partners or employees,” the document says.
At the same time, the total debt of the shale has reached $ 2.2 billion.
After the bankruptcy announcement, stocks fell about 45% to $ 0.39 apiece.
According to the newspaper, many American shale firms have large debts.
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