Saturday 21 July 2018

Tullow Oil to take $140m hit after High Court loss

Tullow Oil CEO Paul McDade
Tullow Oil CEO Paul McDade
Gavin McLoughlin

Gavin McLoughlin

Tullow Oil is set to take a $140m hit after losing a court case with a drilling equipment provider.

The payout exceeds a $128m provision made against the case by Tullow.

The Irish oil and gas business said it was considering whether to appeal.

The English Commercial Court said Tullow was not entitled to terminate a contract with the provider, Seadrill, on the basis of the contract’s so called force majeure provisions.

Force majeure provisions allow a contract to be terminated when unforeseen circumstances arise.

The payment is due within 14 days. Tullow maintains it was entitled to terminate the deal and said it was disappointed with the decision.

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