These fees amount to approximately US$254 million. 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$140 million, which compares with the provision of US$128 million made in the 2017 Annual Report and Accounts.
Tullow 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.
As disclosed in the Group’s recent trading statement, Kosmos is disputing separately, through an arbitration against Tullow with the International Chamber of Commerce, its share of the liability (c. 20%) of any costs related to the use of the West Leo rig beyond 1 October 2016. The arbitration tribunal’s decision is expected shortly.
