Coronavirus company news summary – Oil Search H1-2020 profit plunges 85% – Arena Energy files for Chapter 11 bankruptcy

25 August 2020 (Last Updated August 25th, 2020 09:53)

25 August

Oil and gas exploration and development company Oil Search has reported an 85% drop in H1-2020, compared to last year during the same period (H1-2019). The company’s core profit after tax stood at $24.7m for the period, from $165.2m in H1-2019. The plunge in the profits is mainly due to crash oil of and gas prices as a result of the Covid-19 outbreak which shattered the global economy.

The disruptions caused by the novel coronavirus (Covid-19) outbreak have changed the structure of the oil and gas sector in India, as the share of OPEC crude in the country’s oil imports fall to a decade low in July this year. According to data released by the industry sources, OPEC’s share in India's oil imports was down by 67% in July, from 75%-80% maintained earlier.

Gulf of Mexico driller Arena Energy has filed for Chapter 11 protection, becoming the latest company in the US energy industry to file for bankruptcy following the Covid-19 outbreak. The oil and gas driller has filed for bankruptcy with an intention to virtually sell all of its assets to Lime Rock Partners in a deal valued at $64.2m in cash. Arena attributed the bankruptcy filing to coronavirus-driven oil price crash.