SDLP - Seadrill Partners Receives Notice of Termination for the West Leo
December 02 2016 - 8:45AM
London, United Kingdom, December
2, 2016 - Seadrill Partners ("SDLP" or "the Company") has
received a notice of termination from Tullow Ghana Limited
("Tullow") for the West Leo drilling contract (the "Contract")
dated December 1, 2016. Tullow have purported to terminate
the Contract by reason of the alleged Force Majeure claim declared
in early October 2016, which we have disputed. Further or
alternatively, Tullow has alleged that the Contract has been
discharged by frustration. We do not accept that the Contract
can be terminated or discharged as alleged and our claim in the
English High Court proceedings will be amended to reflect this.
Finally, Tullow has in the further alternative
terminated the Contract for its convenience, should it not succeed
in its argument that it is entitled to terminate the Contract for
Force Majeure or Frustration. In the event of termination for
convenience, Seadrill Partners is entitled to an early termination
fee of 60% of the remaining contract backlog, subject to an upward
or downward adjustment depending on the work secured for the West
Leo over the remainder of the contract term, plus other direct
costs incurred as a result of the early termination.
FORWARD LOOKING STATEMENTS
This news release includes forward looking statements. Such
statements are generally not historical in nature, and specifically
include statements about the Company's plans, strategies, business
prospects, changes and trends in its business and the markets in
which it operates. In particular, statements regarding projected
changes in the Company's cash distributions, the Company's
anticipated growth strategies and its ability to re-contract its
drilling rigs are considered forward looking statements. These
statements are made based upon management's current plans,
expectations, assumptions and beliefs concerning future events
impacting the Company and therefore involve a number of risks,
uncertainties and assumptions that could cause actual results to
differ materially from those expressed or implied in the forward
looking statements, which speak only as of the date of this news
release. Important factors that could cause actual results to
differ materially from those in the forward looking statements
include, but are not limited to the performance of the drilling
rigs in the Company's fleet; delay in payment or disputes with
customers; fluctuations in the international price of oil; changes
in governmental regulations that affect the Company or the
operations of the Company's fleet; increased competition in the
offshore drilling industry; hire rates and factors affecting supply
and demand for drilling rigs; the financial condition of the
Company's existing or future customers; and general economic,
political and business conditions globally. Consequently, no
forward looking statement can be guaranteed. When considering these
forward looking statements, you should keep in mind the risks
described from time to time in the Company's filings with the SEC,
including its Annual Report on Form 20-F (File No.
001-35704).
The Company undertakes no obligation to update any forward looking
statements to reflect events or circumstances after the date on
which such statement is made or to reflect the occurrence of
unanticipated events. New factors emerge from time to time, and it
is not possible for us to predict all of these factors. Further,
the Company cannot assess the impact of each such factor on its
business or the extent to which any factor, or combination of
factors, may cause actual results to be materially different from
those contained in any forward looking statement.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Seadrill Partners LLC via Globenewswire
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