Tullow Told To Pay Seadrill $254 Million Over Ghana Dispute

A London judge ordered Tullow Oil Plc to pay rig owner Seadrill Ltd. (NYSE: SDRL) around $254 million saying Tullow was wrong to end a rig contract in Ghana on grounds of force majeure over a maritime dispute, Tullow said July 3.

Tullow canceled the contract for Seadrill’s West Leo rig in December 2016 after Ghana set a drilling moratorium on its TEN offshore oil and gas field which is located in waters then claimed by both Ghana and Ivory Coast.

An international tribunal last year ruled in favor of Ghana, allowing Tullow, the lead operator of the project, to resume drilling. Kosmos Energy Ltd. (NYSE: KOS), Anadarko Petroleum Corp. (NYSE: APC), Ghana National Petroleum Corp. and PetroSA also hold stakes.