25 July 2018, Accra — UK’s Tullow Oil is expected to pay approximately $14 million to US-based Kosmos Energy over a legal dispute in Ghana, which the US oil company has won.
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, according to a statement by the US firm.
The tribunal’s final award in the arbitration was delivered to the parties by the International Chamber of Commerce on July 17.
As a result of the arbitration award, Kosmos will not be required to fund its portion of Tullow’s liability to Seadrill, estimated by Tullow to be approximately $50.8 million
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.
Kosmos, one of the developers of the West African floating liquefied natural gas, FLNG, project, filed a request for arbitration with the International Chamber of Commerce in July 2016.