Canada’s Shamaran, a small Iraqi Kurdistan-focused firm with a 27.6% non-operating stake in the 50,000 b/d Atrush field, desperately needs to restructure its financial obligations or risk insolvency. The firm has less than a month until $26.4mn of bond obligations fall due on 5 July.
In its own words (11 May) “normal operations at current depressed oil prices will not generate enough cash” to pay for this. The firm then announced on 11 June that it faces an “imminent liquidity shortfall” and that ongoing “difficult discussions” may not offer any solutions that avoid a “significant adverse financial effect on shareholders.” (CONTINUED - 294 WORDS)
