Tullow Ghana Terminated Rig Contract with Seadrill

Tullow Ghana Terminated Rig Contract with Seadrill

Seadrill Partners has announced it received a notice of termination from Tullow Ghana for the semi-submersible rig, West Leo, Ecofin Agency reported.

Tullow had in October declared force majeure, claiming the field the rig had been hired for, was subject to a drilling moratorium by the government of Ghana stemming from a maritime border issue, informed Offshore Energy Today. However, Seadrill said Tullow cited other reasons behind the contract termination.

Seadrill stated: “Further or alternatively, Tullow has alleged that the contract has been discharged by frustration. We do not accept that the contract can be terminated or discharged as alleged and our claim in the English High Court proceedings will be amended to reflect this,”

The driller claims that in the event of termination for convenience, Seadrill Partners is entitled to an early termination fee of 60% of the remaining contract backlog. The amount is subject to an upward or downward adjustment depending on the work secured for the West Leo over the remainder of the contract term, plus other direct costs incurred as a result of the early termination.

Mariana Somensi 890 Posts

Mariana holds a Journalism Bachelor Degree from the State University of Londrina, Brazil. The Brazilian journalist has 4 years of experience on the MENA region's affairs and over a year of experience on the oil and gas industry.

Login

Welcome! Login in to your account

Remember me Lost your password?

Don't have account. Register

Lost Password

Register