Kosmos Energy Announces Successful Arbitration
18 July 2018 - 4:00PM
Business Wire
Kosmos Energy (NYSE: KOS) (LSE: KOS) announced today that its
subsidiary Kosmos Energy Ghana HC was successful in its arbitration
against Tullow Ghana Limited in a dispute over responsibility for
expenditures stemming from termination of the West Leo drilling rig
contract. The tribunal’s Final Award in the arbitration was
delivered to the parties by the International Chamber of Commerce
on July 17, 2018.
As a consequence of the arbitration award, Kosmos will not be
required to fund Kosmos’ portion of Tullow’s liability to Seadrill,
estimated by Tullow to be approximately $50,800,000. Kosmos will
also be reimbursed by Tullow for approximately $14 million plus
interest, related to amounts previously paid under protest as well
as certain costs and fees of pursuing the arbitration.
In June 2016, Kosmos Energy Ghana HC filed a Request for
Arbitration with the International Chamber of Commerce against
Tullow Ghana Limited in connection with a dispute arising under the
Deepwater Tano Joint Operating Agreement. At dispute was Kosmos
Energy Ghana HC’s responsibility for expenditures arising from
Tullow Ghana Limited’s contract with Seadrill for use of the West
Leo drilling rig once partner-approved 2016 work program objectives
were concluded. Tullow sought to charge such expenditures to the
Deepwater Tano joint account. Kosmos disputed that these
expenditures were chargeable to the Deepwater Tano joint account on
the basis that the Seadrill West Leo drilling rig contract was not
approved by the Deepwater Tano operating committee pursuant to the
Deepwater Tano Joint Operating Agreement, and that the Seadrill
West Leo drilling rig contract had not been entered into in
connection with joint operations.
About Kosmos Energy
Kosmos is a well-capitalized, pure play deepwater oil and gas
company with growing production, a pipeline of development
opportunities and a balanced exploration portfolio along the
Atlantic Margins. Our assets include growing production offshore
Ghana and Equatorial Guinea, a competitively positioned Tortue gas
project in Mauritania and Senegal and a sustainable exploration
program balanced between proven basins (Equatorial Guinea),
emerging basins (Mauritania, Senegal and Suriname) and frontier
basins (Cote d'Ivoire and Sao Tome and Principe). As an ethical and
transparent company, Kosmos is committed to doing things the right
way. The Company’s Business Principles articulate our commitment to
transparency, ethics, human rights, safety and the environment.
Read more about this commitment in the Kosmos Corporate
Responsibility Report. For additional information, visit
www.kosmosenergy.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that Kosmos
expects, believes or anticipates will or may occur in the future
are forward-looking statements. Kosmos’ estimates and
forward-looking statements are mainly based on its current
expectations and estimates of future events and trends, which
affect or may affect its businesses and operations. Although Kosmos
believes that these estimates and forward-looking statements are
based upon reasonable assumptions, they are subject to several
risks and uncertainties and are made in light of information
currently available to Kosmos. When used in this press release, the
words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will”
or other similar words are intended to identify forward-looking
statements. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of
Kosmos, which may cause actual results to differ materially from
those implied or expressed by the forward-looking statements.
Further information on such assumptions, risks and uncertainties is
available in Kosmos’ Securities and Exchange Commission (“SEC”)
filings. Kosmos undertakes no obligation and does not intend to
update or correct these forward-looking statements to reflect
events or circumstances occurring after the date of this press
release, except as required by applicable law. You are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. All
forward-looking statements are qualified in their entirety by this
cautionary statement.
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version on businesswire.com: https://www.businesswire.com/news/home/20180717006075/en/
Kosmos EnergyInvestor RelationsJamie Buckland, +44 (0)
203 954 2831jbuckland@kosmosenergy.comorRhys Williams,
+1-214-445-9693rwilliams@kosmosenergy.comorMedia
RelationsThomas Golembeski,
+1-214-445-9674tgolembeski@kosmosenergy.com
Kosmos Energy (NYSE:KOS)
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