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Tullow Oil examines an appeal against a decision of the UK High Court that found that the independent Anglo-Irish did not have the right to terminate a contract in Ghana for a platform Seadrill invoking a force majeure clause, writes Eoin O. Cinneide
The London-listed player has been ordered to pay the owner of the platform during the late 2016 rental of the semi-submersible West Leo, which was drilling on Tweneboa-Enyenra-Ntomme (TEN) operated by Tullow.
Tullow had invoked the measure of force majeure when a moratorium had been imposed on the route because of a maritime boundary dispute between Ghana and Ivory Coast – which has since been solved in favor of Ghana, allowing a return to drilling. 19659003] However, Seadrill challenged Tullow's right to terminate the charter on such terms, with the British Teare Justice of the English Commercial Court supporting the driller this week.
Tullow was ordered to pay Seadrill the legal costs and expenses that were accrued in the 60 days prior to the termination, which date was December 4, 2016.
Tullow stated that the total amount of fees due is about 254 million, adding the net amount due on the basis of its share of the field is about 140 million. The company had already forecast $ 128 million in its 2017 annual report to cover the cost of a possible judicial loss.
Seadrill, however, stated that he was awarded a total of $ 273 million.
Tullow contemplates "Tullow is disappointed with the decision and maintains the view that it was right to terminate the West Leo's force majeure contract.
"Tullow will now consider his options, including seeking leave to appeal the judgment.
The company operates the TEN Development Zone on 47.18% and is joined by the independent US Kosmos Energy and Anadarko Petroleum, the state player Ghana National Petroleum Corporation and PetroSA in South Africa.
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