Oil analyst sees more challenges ahead for growing bankruptcies

摘要

E&P and oilfield service(OFS)companies looking to refinance debt amid continued volatility and a global pandemic may find themselves facing another challenge."What we're seeing today is that it's not only very expensive,but it is actually very challenging to refinance this debt,"Arindam Das,group head of consulting for Westwood Global Energy Group."As a consequence of that,we are likely to see a lot of debt restructuring and defaults in H2 2020."About $140 billion worth of debt is due to mature between 2020 and 2022 in the U.S.oil and gas market.At more than 55%,the majority of the debt is noninvestment or speculative grade.This comes as the oil and gas industry endures an unprecedented downturn and tough market conditions give rise to more bankruptcy filings.