Texas-based oilfield supplier faces disruptions following ransomware attack

A key supplier for oilfields said a ransomware attack last week has caused disruptions and limited access to certain systems. 

In a regulatory filing on Thursday evening, Newpark Resources said it discovered the ransomware attack on October 29 that affected internal information systems. 

“The incident has caused disruptions and limitation of access to certain of the Company’s information systems and business applications supporting aspects of the Company’s operations and corporate functions, including financial and operating reporting systems,” the company told the U.S. Securities and Exchange Commission (SEC).

“However, the Company’s manufacturing and field operations have continued in all material respects utilizing established downtime procedures.” 

The company has not determined what the costs and financial impacts of the incident will be but said the attack “is not reasonably likely to materially impact the Company’s financial conditions or results of operations.” 

Newpark Resources manufactures, sells, and rents tools for drilling that are used in oilfields and several other energy-related industries like pipelines, renewable energy, petrochemicals and construction. 

In an earnings report on Thursday, the Woodlands, Texas-based company reported a quarterly revenue of more than $44 million and expects an annual revenue of up to $223 million. 

No hacking group has taken credit for the incident as of Thursday. The oil and gas industry has repeatedly been targeted by ransomware operations due to its propensity for paying ransoms as a critical industry globally. 

Companies like Shell, Haliburton, Colonial Pipeline, Encino, Oiltanking, Mabanaft and more have dealt with ransomware incidents over the last four years — prompting increased efforts by the federal government to mandate stricter cybersecurity protections.