Africa’s Tullow oil to pay Seadrill US$254mn over West Leo dispute

West LeoTullow has indicated that it is considering its options to appeal to the Court of Appeal after an initial application for permission to appeal was rejected by the presiding judge at the hearing. (Image source: Dave Conner/Flickr)The English High Court has asked Tullow Ghana Ltd to pay US$254mn to Seadrill Ghana Operations Limited, a subsidiary of Seadrill Partners LLC (SDLP), noting that Tullow was wrong to terminate the West Leo contract in Ghana

Seadrill Ghana was seeking to recover standby and force majeure rates and early termination fees of US$278mn plus interest and legal expenses.

Tullow expects to be required to pay these fees within the next 14 days with Tullow being liable for a net amount of approximately US$140mn , which compares with the provision of US$128mn made in the 2017 Annual Report and Accounts.

Tullow has indicated that it is considering its options to appeal to the Court of Appeal after an initial application for permission to appeal was rejected by the presiding judge at the hearing.

"We are disappointed with the decision and maintain 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," said Tullow.

On 3 October 2016, Tullow issued a notice of force majeure to Seadrill for the West Leo semi-submersible.

Kosmos Energy, American international oil company, is also disputing with Tullow before the International Chamber of Commerce about its share of liability of costs regarding West Leo rig.

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