Global E&P capex bottoming out-II: Banks as de facto owners of vessels prolonging the supply imbalance?
The prolonged downturn in oil market since 3Q14 has devastated the downstream vessel supply chain. 8Asset-heavy companies geared for a US$100 oil price have failed to meet their financial obligations, especially from banks. 8At present, banks are controlling assets such as vessels, rigs, and other facilities, taken over from loan defaulters. 8Faced with the difficulty of disposing of the assets, banks are still keeping many vessels afloat. 8Such assets operate under minimal positive cash flows and managed by either third party operators hired by banks or creditors or the original owners. 8Assets that should have been scrapped remain operational and have prolonged the supply imbalance Click on Reports to know more on this story