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By Geoff Percival
Tullow Oil is considering appealing a court ruling stating that it should pay a minimum of $ 140m (€ 120m) to cover the costs stemming from the early termination of a drilling equipment contract in 2016.
The English Commercial Court ruled in favor of the contractor Seadrill platforms, claiming that he owed her a total of $ 254 million for the termination. Tullow cited force majeure in its termination of the drilling contract.
She stated that a territorial dispute between Ivory Coast and Ghana – suspension of drilling on her TEN field off the coast of Ghana – and industrial problems on his field Jubilee constituted unforeseen circumstances.
Tullow is responsible According to the court, about $ 140 million of the total costs, the rest to be paid by the project partners in the region.
The Irish exploration company said that she was "disappointed" by the decision and stated that she was right to terminate the contract for force majeure. He said he would now review his options, "including seeking leave to appeal the judgment".
Tullow expects to be required to pay his fees in the next 14 days. The $ 140 million is higher than the $ 128 million set aside by Tullow in its 2017 accounts.
Kosmos Energy is also suing the company, which is contesting its 20% share of global liabilities, which is approximately $ 50 million.
If Kosmos were to succeed, Tullow would also be liable for this payment. However, Tullow has made no arrangements for these additional costs.
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