Parker Drilling Pays $26 Million in Income Taxes to Kazakhstan
Parker Drilling Company, a U.S. company and worldwide provider of drilling and drilling-related services, reported that in December 2007 a subsidiary paid $26 million in income taxes to the Republic of Kazakhstan pursuant to a previously reported tax assessment. The payment is exclusive of interest and net of estimated taxes previously paid of approximately US$12 million. The Company will receive a foreign tax credit for this payment against future tax payments which would otherwise be paid to the United States Treasury, excluding any currency exchange losses. The Kazakhstan branch of the Company's subsidiary has filed an appeal requesting a reduction in the interest.
Parker has funded a portion of this tax payment by borrowing US$20 million of approximately US$45 million available under its revolving credit facility. It is anticipated that this US$20 million of borrowings will be repaid during the latter half of 2008. Parker also anticipates that it can fund any interest ultimately assessed from cash on hand or from additional borrowings under its revolving credit facility.