Oil Producer Afren's Board to Put Company into Administration
July 31 (Reuters) – Oil producer Afren Plc said its board has decided to put the company into administration after failing to secure support for a refinancing and restructuring plan.
Afren, whose shares have been suspended since July 15, said talks with bondholders, banks and its partners were scuppered after the company cut its production forecast for the year.
"Whilst the overall capacity of the assets to deliver field life production remains broadly unchanged, the near-term deferral of production revenues has undermined the immediate liquidity position of the business," the company said in a statement.
The board has appointed Simon Appell, Daniel Imison and Catherine Williamson of AlixPartners as administrators and said it is working with its partners to continue operations.
Afren, whose main producing assets are in Nigeria, was forced to take a nearl $2 billion charge in 2014 for impairments and write-offs due to the fall in oil prices and the wiping out of reserves at an oilfield in Iraqi Kurdistan.
(Reporting by Abhiram Nandakumar in Bengaluru; Editing by Savio D'Souza)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds