Canada’s Shamaran Petroleum has been the hardest hit of the firms populating Iraqi Kurdistan’s upstream sector. With just one producing asset – a 27.6% stake in the 50,000 b/d Atrush field – the toxic combination of low oil prices, outstanding payments from the KRG totalling $42mn, and a looming 5 July deadline for $26.4mn of bond obligations threatened to push the firm into insolvency (MEES, 12 June).
With time running out, the firm announced on 25 June that a preliminary agreement has been reached with bondholders which “addresses the Company’s breach of financial covenant and imminent liquidity shortfall and will enable the Company to re-focus its efforts on its business.” The proposal requires approval by holders of 66% of the 12% senior unsecured bonds due 2023. Shamaran says the bondholders have indicated this will be reached. (CONTINUED - 249 WORDS)