Arbitrators Rule Against Tullow Oil in Dispute With Kosmos Energy
18 July 2018 - 5:21PM
Dow Jones News
By Oliver Griffin
Tullow Oil PLC (TLW.LN) said Wednesday that an arbitration panel
has ruled against it in a dispute with Kosmos Energy Ltd. (KOS),
finding that Kosmos isn't liable to pay costs arising from a
lawsuit brought by Seadrill Ghana Operations Ltd. against
Tullow.
On July 3 a commercial court in England ruled that Tullow must
pay $254 million to Seadrill in contract termination and standby
fees after Seadrill argued that Tullow's Ghanaian subsidiary,
Tullow Ghana Ltd., wasn't entitled to terminate the West Leo rig
contract in December 2016 by invoking the contract's force majeure
provisions.
The arbitration ruling, which is final and binding, relates to a
dispute between Tullow Ghana and Kosmos Energy Ghana HC over the
Deep Tano joint operating agreement offshore Ghana.
As a result of the ruling, Kosmos won't be required to pay its
$50.8 million share of costs related to the case brought by
Seadrill. Additionally, Tullow is to pay Kosmos $14 million plus
interest related to amounts previously paid under protest, as well
as costs of arbitration.
Kosmos's Ghana-based subsidiary filed its arbitration request
against Tullow Ghana Limited in June 2016, disputing its
responsibility for costs arising from Tullow's contract with
Seadrill for use of the West Leo drilling rig once partner-approved
2016 work-program objectives were concluded.
Write to Oliver Griffin at oliver.griffin@dowjones.com
(END) Dow Jones Newswires
July 18, 2018 03:06 ET (07:06 GMT)
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