Companies

Ghana: Tullow declares Force Majeure on Seadrill’s West Leo rig contract

Tuesday, 04 October 2016 15:24

 

Seadrill Partners has received a notice of force majeure from Tullow concerning the West Leo rig contract for the TEN development project in Ghana.

According to Seadrill, the notice which took effect from October 3, claimed the TEN field that the rig was hired for, has been subjected to a drilling suspension by the government of Ghana.

The legally authorized suspension was put in place as a result of the current arbitration hearing before the International Tribunal for the Law of the Sea (ITLOS) in order to identify the demarcation of a disputed border.

The Company disputes Tullow’s claim for Force Majeure and will enforce all its rights as per the contract and governing law,” Seadrill said.

The company is added that even if the suspension claims was correct, the Tullow operated fields in Ghana, where the ultra-deepwater semi-submersible drill rig had earlier operated under the contract, are not subject to such arbitration hearings.

Consequently, Seadrill Partners strongly believes that the grounds required for a Force Majeure claim have not been met,” the company added.

In January 2013, Tullow executed its options to extend the contract for the West Leo drill rig by two years from May 2016 to May 2018. Under the contract, the West Leo will carry out operations in Ghana till the end of its contract in May 2018, Offshore Energy Today reports.

Anita Fatunji

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