Kosmos Energy Ghana HC has successfully challenged Tullow Oil’s claim related to expenditures arising from termination of a drilling contract for Seadrill’s semisubmersible West Leo.
The tribunal’s Final Award in the arbitration was delivered by the International Chamber of Commerce on July 17, 2018.
It means that Kosmos will not have to fund its portion of Tullow’s liability to Seadrill, estimated by Tullow at around $50.8 million, and Tullow will also have to reimburse Kosmos for around $14 million plus interest, related to amounts previously paid under protest, rig mobilization costs, and legal costs and fees for pursuing the arbitration.
The company had disputed Tullow Ghana’s attempt to charge expenditures to the Deepwater Tano operating committee related to the termination of theWest Leo contract, but Kosmos successfully argued that the committee had not approved the contract, and that the contract had not been entered into in connection with joint operations.
