Arbitration in favor of Kosmos Energy in the Tullow Oil dispute

Arbitrators granted in favor of Kosmos Energy in its dispute with Tullow Oil .

The dispute is who is responsible for the costs badociated with the termination of the West Leo Drilling Rig Contract.

As a result of the auction, Kosmos will not be required to finance its share of Tullow's liability to Seadrill, resulting from the recent case before the English Commercial Court, estimated by Tullow at about 50.8 million $ (44 M €).

Kosmos will also be reimbursed by the Irish oil and gas company for approximately $ 14 million (€ 12 million) plus interest. A statement from Kosmos indicates that the fees due are separate from the amount of $ 140 million (120 million dollars). million euros) that Tullow must pay as a result of the UK Commercial Court's ruling that Tullow did not have the right to terminate a contract with the supplier, Seadrill, on the basis of the provisions so-called force majeure of the contract.

Force majeure provisions allow the termination of a contract

Tullow argues that she was entitled to terminate the transaction and stated that she was disappointed in decision.

The Irish oil and gas company said earlier this month that it was considering appealing the judgment Meanwhile, Tullow said yesterday that it could be forced to close operations in his oil fields in northern Kenya he can not reach an agreement to end protests from the local community that disrupted the oil trucking activities of

The protests, which began on 27 June, discontinued a trucking program to transport approximately 2,000 barrels per day (bpd) of crude oil from the northern oil fields to the coast. The pilot project was launched in June

The oil is used to test flows and other technical problems before the start of full production and before Kenya begins oil exports via a pipeline to the coast. The pipeline is expected to be built by 2022.

(Reuters)

Editors