Pursuits
No Credit? No Problem! Pipe Maker Offers Oil Companies Financing
- Decision comes amid a tightening of bank lending to drillers
- Crude’s 40% plunge in past year is squeezing producer margins
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Billionaire Paolo Rocca has a new way of keeping his cash-starved oil company clients drilling: putting up funding as bank credit tightens.
Rocca’s Tenaris SA, the biggest manufacturer of seamless steel tubes for the oil industry, will use its own cash to support clients next year after crude prices collapsed, the Argentine-Italian entrepreneur said Thursday on a quarterly conference call. Tenaris is prepared to take a hit on its net cash holdings as a result.