Tullow Oil plc pronounces judgment within the English Commercial Court case introduced towards its wholly owned subsidiary Tullow Ghana Limited by Seadrill Ghana Operations Limited has been obtained. The Hon. Mr Justice Teare has dominated that Tullow was not entitled to terminate its West Leo rig contract with Seadrill on December4, 2016 by invoking the contract’s power majeure provisions and as such requires Tullow to pay Seadrill a contractual termination payment and different standby charges that accrued within the 60 days previous to termination of the contract.
These charges quantity to roughly $254 million. Tullow expects to be required to pay these charges inside the subsequent 14 days with Tullow being accountable for a web quantity of roughly $140 million, which compares with the supply of $128 million made within the 2017 Annual Report and Accounts.
Tullow is disillusioned with the choice and maintains the view that it was proper to terminate the West Leo contract for power majeure. Tullow will now look at its choices, together with in search of go away to enchantment the judgment.
As disclosed within the Group’s current buying and selling assertion, Kosmos is disputing individually, via an arbitration towards Tullow with the International Chamber of Commerce, its share of the legal responsibility (c. 20%) of any prices associated to the usage of the West Leo rig past October 1, 2016. The arbitration tribunal’s choice is anticipated shortly.
Please go away feedback and suggestions under