While Weatherford International is in the process of reorganizing its debt and bankruptcy, the company has made a five-year equipment deal with Saudi Aramco.
The two companies announced the deal this week but financial terms were not disclosed. Weatherford described the deal as a five-year corporate procurement agreement to deliver cementation, completions, liners, solid expandables and casing exit technologies to Saudi Aramco according to the Houston Chronicle.
In a statement, Weatherford Vice President of Saudi Arabia Jim Hollingsworth said deal would boost crude oil production for Saudi Aramco while saving rig time and associated costs.
U.S. Bankruptcy Judge David Jones issued an order last week accepting the company’s amended reorganization plan.
The approved plan gives Weatherford access to $600 million in credit and the ability to issue $1.6 billion of notes that will be used to pay down debt.
With roots going back to 1941, Weatherford grew to become the nation’s fourth-largest oil field services company but racked up $10 billion in debt along the way.
Headquartered in Switzerland but with its principal offices in Houston, the struggling oilfield service company has not made a profit since the third quarter of 2014.
With a bleak outlook for demand during the rest of 2019, Weatherford has been supplementing its operations with cash from investing and financing activities.