Saturday 26 May 2018

Providence Resources hit with $7m bill following London court order

The Barryroe field. Photo: PA
The Barryroe field. Photo: PA

Independent.ie business desk

Providence Resources is in talks with its lenders on how to fund $7m (€6.2m) it was ordered to pay to drilling firm Transocean by a court in London.

Irish stock exchange listed Providence Resources said it is now “in active discussions” with its financial advisors and lenders to ensure that the company has the appropriate financial resources to meet the bill.

Providence said y that the parties and their legal advisors are currently in the process of agreeing the final amount payable to Transocean, the company said it cannot confirm the final amount payable.

Shares had been suspended in Dublin and London yesterday ahead of a decsion on the case by an appeals court in London.

Following the decision, Providence Resources requested a continued suspension of its shares from trading while it assesses the

“Pending clarification of such matters, and having regard to the Company’s existing financial resources, the Company has requested the continued suspension of its shares from trading on AIM and ESM.”

Drilling firm Transocean had appealed a previous ruling that Providence was not obliged to pay it $19m in connection with drilling activity at the Barryroe field off the Cork coast.

The London commercial court had ruled that Transocean was in breach of contract for failing to maintain various parts of its equipment.

The decision is the latest blow to Providence Resources which has struggled to capitalise on off-shore oil finds.

 

 

 

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