Kosmos Energy announces successful arbitration against Tullow

Must Read

OilNOW
OilNOW
OilNOW is an online-based Information and Resource Centre

Kosmos Energy (NYSE: KOS) (LSE: KOS) announced Wednesday that its subsidiary Kosmos Energy Ghana HC was successful in its arbitration against Tullow Ghana Limited in a dispute over responsibility for expenditures stemming from termination of the West Leo drilling rig contract. The tribunal’s Final Award in the arbitration was delivered to the parties by the International Chamber of Commerce on July 17, 2018.

As a consequence of the arbitration award, Kosmos will not be required to fund Kosmos’ portion of Tullow’s liability to Seadrill, estimated by Tullow to be approximately $50,800,000. Kosmos will also be reimbursed by Tullow for approximately $14 million plus interest, related to amounts previously paid under protest as well as certain costs and fees of pursuing the arbitration.

In June 2016, Kosmos Energy Ghana HC filed a Request for Arbitration with the International Chamber of Commerce against Tullow Ghana Limited in connection with a dispute arising under the Deepwater Tano Joint Operating Agreement. At dispute was Kosmos Energy Ghana HC’s responsibility for expenditures arising from Tullow Ghana Limited’s contract with Seadrill for use of the West Leo drilling rig once partner-approved 2016 work program objectives were concluded. Tullow sought to charge such expenditures to the Deepwater Tano joint account. Kosmos disputed that these expenditures were chargeable to the Deepwater Tano joint account on the basis that the Seadrill West Leo drilling rig contract was not approved by the Deepwater Tano operating committee pursuant to the Deepwater Tano Joint Operating Agreement, and that the Seadrill West Leo drilling rig contract had not been entered into in connection with joint operations.

- ADVERTISEMENT -
spot_img

Partnered Events

Latest News

Sensorion Announces New Positive Secondary Efficacy Endpoints Data From SENS-401 Phase 2a Clinical Trial For The Preservation Of Residual Hearing Loss

MONTPELLIER, France--(BUSINESS WIRE)--Regulatory News: Sensorion (FR0012596468 – ALSEN) a pioneering clinical-stage biotechnology company which specializes in the development of novel...

More Articles Like This