Debt load problems remain in oil and gas industry


(FILES) This August 21, 2013 file photo shows an oil well near Tioga, North Dakota. Crude oil prices fell August 17, 2015, deepening a long slide as traders expect US production will remain strong, adding to abundant global supplies. AFP PHOTO / Karen BLEIER / FILES

THE near-demise of Singapore-listed oilfield services company Swiber Holdings Ltd has cast a large shadow on its Malaysian peers who are facing similar mounting debts, a lack of new tenders and a depleting cash pile.

With oil prices still in a bear market for the second year running, smaller offshore services firms may continue to underperform as high debt obligations will continue to eat up existing cash reserves, say analysts.

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Business , oil and gas , industry , crude

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