Credit crunch hits Imperial Energy

LONDON

The move is one of the first examples of the credit crunch spilling over into the oil and gas sector.

In the past six months many businesses have been shut out of debt markets and even established companies faced higher interest rates and tougher lending conditions.

But surging oil prices which hit a record above $111 a barrel last month ensured oil companies had little difficulty raising cash for projects. This may now be changing.