Tullow Oil PLC High Court Judgment: Seadrill vs Tullow Ghana Ltd (4463T)
July 03 2018 - 7:00AM
UK Regulatory
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RNS Number : 4463T
Tullow Oil PLC
03 July 2018
News Release
High Court Judgment: Seadrill vs Tullow Ghana Ltd
3 July 2018 - Tullow Oil plc (Group) announces that a judgment
in the English Commercial Court case brought against its wholly
owned subsidiary Tullow Ghana Limited (Tullow) by Seadrill Ghana
Operations Limited (Seadrill) has been received today. The Hon. Mr
Justice Teare has ruled that Tullow was not entitled to terminate
its West Leo rig contract with Seadrill on 4 December 2016 by
invoking the contract's force majeure provisions and as such
requires Tullow to pay Seadrill a contractual termination fee and
other standby fees that accrued in the 60 days prior to termination
of the contract.
These fees amount to approximately $254 million. Tullow expects
to be required to pay these fees within the next 14 days with
Tullow being liable for a net amount of approximately $140 million,
which compares with the provision of $128 million made in the 2017
Annual Report and Accounts.
Tullow is disappointed with the decision and maintains the view
that it was right to terminate the West Leo contract for force
majeure. Tullow will now examine its options, including seeking
leave to appeal the judgment.
As disclosed in the Group's recent trading statement, Kosmos is
disputing separately, through an arbitration against Tullow with
the International Chamber of Commerce, its share of the liability
(c. 20%) of any costs related to the use of the West Leo rig beyond
1 October 2016. The arbitration tribunal's decision is expected
shortly.
FOR FURTHER INFORMATION CONTACT:
Tullow Oil
plc
(+44 20
3249 9000)
Chris Perry
George Cazenove
Nicola Rogers
=================
Notes to Editors
Tullow Oil plc
Tullow is a leading independent oil & gas, exploration and
production group, quoted on the London, Irish and Ghanaian stock
exchanges (symbol: TLW). The Group has interests in over 85
exploration and production licences across 16 countries which are
managed as three business delivery teams: West Africa, East Africa
and New Ventures.
Follow Tullow on:
Twitter: www.twitter.com/TullowOilplc YouTube: www.youtube.com/TullowOilplc
Facebook: www.facebook.com/TullowOilplc LinkedIn: www.linkedin.com/company/Tullow-Oil
Website: www.tullowoil.com
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END
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