California Resources Corp. is in talks with lenders for a financing package of up to $600 million to carry the oil and gas company through a planned bankruptcy proceeding, the Wall Street Journal reported on May 13, citing people familiar with the matter.
California's biggest oil producer has been seeking a bankruptcy loan of $500 million to $600 million, though the talks are still fluid and the amount could change, the report said.
A fall in economic activity due to the COVID-19 pandemic and a price war between top oil producers Russia and Saudi Arabia has hurt oil prices, with U.S. crude falling about 60% this year and dropping below $0 for the first time in history last month.
The Los Angeles-based company had earlier raised doubts about its ability to continue as a going concern. It entered into an amendment to reduce revolving loan limit to $900 million from $1 billion.
The company declined to comment on the report, but reiterated it was in talks with its lenders for a resolution that would allow it to continue its business.
A recent survey revealed the energy transition will likely be immune to COVID-19 as 92% of oil and gas executives reported already having or developing a strategy to reduce reliance on fossil fuels.
As chairman and president of BP America, David C. Lawler is expected to lead the British oil major’s efforts in the U.S. to become net-zero by 2050.
Acteon Group Ltd., a leading global provider of marine and seabed services to the renewable, infrastructure and oil and gas industries, said May 27 that Dr. Carl Trowell is to be appointed as group CEO, succeeding Richard Higham.