# Pacific Drilling - Final contract pulled **URL:** \ **Category:** Offshore\ **Created:** [July 28, 2020, 4:48am UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176 "2020-07-28T04:48:53Z")\ **Posts on this page:** 16\ **Page:** 1
**Author:** ![ITOIL](https://avatars.discourse-cdn.com/v4/letter/i/90db22/32.png) [@ITOIL](https://forum.gcaptain.com/u/ITOIL)\ **Post date:** [July 28, 2020, 4:48am UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/1 "2020-07-28T04:48:53Z")
Heard through the grapevine that Pacific Drilling has been notified of termination of their only working rigs contract? Any one confirm? If they weren’t done, this for sure ends the company. ---
**Author:** ![spork](https://avatars.discourse-cdn.com/v4/letter/s/df705f/32.png) [@spork](https://forum.gcaptain.com/u/spork)\ **Post date:** [July 29, 2020, 5:00pm UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/2 "2020-07-29T17:00:54Z")
They’re announcing their second quarter results on the 7th of August, might hear something about it then. > **[Pacific Drilling Announces Second-Quarter 2020 Results Conference Call](https://www.pacificdrilling.com/investors/news/news-details/2020/Pacific-Drilling-Announces-Second-Quarter-2020-Results-Conference-Call/default.aspx)** > > Pacific Drilling S.A. (NYSE: PACD) will issue a press release on Thursday, August 6, 2020 announcing its financial results for the second quarter ended June 30, 2020 following market close. The earnings announcement press release will be available on... ---
**Author:** ![ITOIL](https://avatars.discourse-cdn.com/v4/letter/i/90db22/32.png) [@ITOIL](https://forum.gcaptain.com/u/ITOIL)\ **Post date:** [July 29, 2020, 6:34pm UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/3 "2020-07-29T18:34:49Z")
> **[Rig players in merger talks as oil price slump hammers offshore drilling |...](https://www.upstreamonline.com/rigs-and-vessels/rig-players-in-merger-talks-as-oil-price-slump-hammers-offshore-drilling/2-1-835153)** > > Diamond Offshore Drilling and Pacific Drilling exploring potential combination as Covid-19 and oil price woe bite drilling sector ---
**Author:** ![spork](https://avatars.discourse-cdn.com/v4/letter/s/df705f/32.png) [@spork](https://forum.gcaptain.com/u/spork)\ **Post date:** [July 29, 2020, 7:26pm UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/4 "2020-07-29T19:26:43Z")
Now might be a good time to short on drilling stock. ---
**Author:** ![spork](https://avatars.discourse-cdn.com/v4/letter/s/df705f/32.png) [@spork](https://forum.gcaptain.com/u/spork)\ **Post date:** [July 30, 2020, 6:47pm UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/5 "2020-07-30T18:47:38Z")
> **[Murphy Oil to Take Pacific Drilling Rig on a Ten-Well Term in 2021. Scraps...](https://www.oedigital.com/news/480579-murphy-oil-to-take-pacific-drilling-rig-on-a-ten-well-term-in-2021-scraps-2020-deal)** > > Offshore drilling contractor Pacific Drilling has lost a two-well contract for its Pacific Sharav drillship with Murphy Oil, but… ---
**Author:** ![shipengr](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.gcaptain.com/shipengr/32/485_2.png) [@shipengr](https://forum.gcaptain.com/u/shipengr)\ **Post date:** [July 30, 2020, 7:52pm UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/6 "2020-07-30T19:52:11Z")
That’s interesting, I wonder if the future contract includes a mobilization rate. If not that seems like a gamble that a) Pacific still exists as a solvent company in 2021, and b) Pacific has the tens of millions cash on hand to successfully unstuck the rig at that time. ---
**Author:** ![spork](https://avatars.discourse-cdn.com/v4/letter/s/df705f/32.png) [@spork](https://forum.gcaptain.com/u/spork)\ **Post date:** [July 30, 2020, 8:55pm UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/7 "2020-07-30T20:55:18Z")
Good points. Also if Joe Biden wins in November, which is looking likely, how long will it take him to get his offshore drilling ban in place? Surely that will mean these drilling contacts will be cancelled? Perhaps oil and gas companies are postponing contracts to see if he wins. ---
**Author:** ![Menizzi](https://avatars.discourse-cdn.com/v4/letter/m/cab0a1/32.png) [@Menizzi](https://forum.gcaptain.com/u/Menizzi)\ **Post date:** [July 30, 2020, 9:20pm UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/8 "2020-07-30T21:20:33Z")
Joe is not going to win lol ---
**Author:** ![ITOIL](https://avatars.discourse-cdn.com/v4/letter/i/90db22/32.png) [@ITOIL](https://forum.gcaptain.com/u/ITOIL)\ **Post date:** [July 31, 2020, 3:44am UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/9 "2020-07-31T03:44:09Z")
81 million in future revenue will not keep the company afloat. ---
**Author:** ![tengineer1](https://avatars.discourse-cdn.com/v4/letter/t/858c86/32.png) [@tengineer1](https://forum.gcaptain.com/u/tengineer1)\ **Post date:** [July 31, 2020, 5:25am UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/10 "2020-07-31T05:25:59Z")
Biden said no NEW permits which is an empty threat. They can’t economically drill with existing permits now due to the low oil price. ---
**Author:** ![shipengr](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.gcaptain.com/shipengr/32/485_2.png) [@shipengr](https://forum.gcaptain.com/u/shipengr)\ **Post date:** [July 31, 2020, 6:37am UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/11 "2020-07-31T06:37:59Z")
> [@spork](#): > > how long will it take him to get his offshore drilling ban in place? Surely that will mean these drilling contacts will be cancelled? Unlikely. The official campaign policy is no new drilling permits on public lands or waters, and a moratorium on arctic drilling. The US isn’t Venezuela or Brazil (yet, I don’t think) where the government can just grab existing offshore drilling programs and say they are ours now, shut it down. (2010 Moratorium notwithstanding, that was different). There are far too many hundreds of private companies involved, domestic and foreign. And you can bet that lease sales will continue up until inauguration day. Current leases and drilling permits extend typically for years in the future. If Biden wins I would not be the least bit surprised if permit applications increase and are fast-tracked for approval before the New Year. That being said, it is one of many campaign promises directed at appeasing the base. Like eliminating birthright citizenship, eliminating funding for sanctuary cities, and building a wall that Mexico will pay for. It riles up the supporters, but is unlikely to be meaningfully carried out. Ban or no, even restructuring may not save Pacific. Restructured debt still needs to be paid, and that requires rigs on contracts, and contracts above breakeven. ---
**Author:** ![ombugge](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.gcaptain.com/ombugge/32/11217_2.png) [@ombugge](https://forum.gcaptain.com/u/ombugge)\ **Post date:** [July 31, 2020, 9:53am UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/12 "2020-07-31T09:53:59Z")
Pacific Drilling SA is owned by an Israeli billionaire, who also own Tanker Pacific in Singapore and has mining interests. It’s corporate HQ is in Luxembourg, with operational HQ in Houston and operating internationally, not only in US GoM. The worldwide downturn in drilling activities due to low oil prices and over supply has more influence on it’s activity (or lack thereof) than anything to do with US politics. PS\> It is not likely that activity in deep waters will improve in the near future (if ever), Mr. Ofer is not likely to go broke though. ---
**Author:** ![ITOIL](https://avatars.discourse-cdn.com/v4/letter/i/90db22/32.png) [@ITOIL](https://forum.gcaptain.com/u/ITOIL)\ **Post date:** [July 31, 2020, 2:25pm UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/13 "2020-07-31T14:25:49Z")
Mr. Ofer, barely owns any of the company with the last two restructures. Quantum Pacific is his golden goose. ---
**Author:** ![tugsailor](https://avatars.discourse-cdn.com/v4/letter/t/a9adbd/32.png) [@tugsailor](https://forum.gcaptain.com/u/tugsailor)\ **Post date:** [July 31, 2020, 2:42pm UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/14 "2020-07-31T14:42:33Z")
That’s good, Mr. Ofer got out at the right time. Those Kind of instincts are why he is a billionaire. Now, if he wants to, and the price is right, he can buy it back for pennies on the dollar. ---
**Author:** ![ombugge](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.gcaptain.com/ombugge/32/11217_2.png) [@ombugge](https://forum.gcaptain.com/u/ombugge)\ **Post date:** [July 31, 2020, 2:44pm UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/15 "2020-07-31T14:44:34Z")
> [@ITOIL](#): > > Mr. Ofer, barely owns any of the company with the last two restructures He still appears to have control though. (Maybe he owns enough through one or more of his many holding companies and Tanker Pacific??) ---
**Author:** ![shipengr](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.gcaptain.com/shipengr/32/485_2.png) [@shipengr](https://forum.gcaptain.com/u/shipengr)\ **Post date:** [July 31, 2020, 6:02pm UTC](https://forum.gcaptain.com/t/pacific-drilling-final-contract-pulled/56176/16 "2020-07-31T18:02:54Z")
He was Pacific’s largest shareholder (~70%) before the 2018 restructure. That restructuring saw equity shareholders completely wiped out. The deal created by Ofer (via Quantum) got him 20% of the new debt offerings and about 10% minimum of the new equity shares. A little research shows that about 80% of current shares are held by institutional shareholders. He’s no doubt still very influential, but his debt and equity holdings are still subject to default and cancelations along with everyone else’s if they have no revenue and break covenants.