Seadrill received a notice of termination from Tullow Ghana for the West Leo drilling contract effective 1 December 2016.
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The West Leo, from Seadrill. |
“Tullow has purported to terminate the contract by reason of the alleged force majeure claim declared in early October 2016, which we have disputed,” Seadrill said in a statement. “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 West Leo was under contract with Tullow Ghana for the company’s big TEN development project offshore Ghana.
“Finally, Tullow has in the further alternative terminated the contract for its convenience, should it not succeed in its argument that it is entitled to terminate the contract for force majeure or frustration. In the event of termination for convenience, Seadrill Partners is entitled to an early termination fee of 60% of the remaining contract backlog, 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,” Seadrill said.
In October, Seadrill received, and disputed a notice of force majeure from Tullow Ghana for the West Leo contract.
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