Following a failure to sign PSC amendment for the commencement of operations offshore Guinea, Hyperdynamics through its subsidiary SCS Corporation has filed legal actions against its partners under the Joint Operating Agreement (JOA) governing the oil and gas exploration rights.

SCS Corporation filed parallel actions against Tullow Guinea Ltd., and Dana Petroleum (E&P) Limited, in the United States District Court for the Southern District of Texas and before the American Arbitration Association.

According to Hyperdynamics, Tullow and Dana have breached their contractual obligations and both are required to move forward with well-drilling activities offshore Guinea.

In March 2014, Tullow, which is the operator of the offshore exploration block in Guinea, declared Force Majeure on operations in the area, after a U.S. regulatory investigation of Hyperdynamics Corp. The Force Majeure was lifted in May 2014 and talks have been ongoing with the Government of Guinea on the resumption of Tullow’s petroleum operations.

Meanwhile in August 2015, Tullow Guinea submitted a work program and budget to Dana and Hyperdynamics, for the drilling of a well prior to the September 2016 deadline under the PSC. It also presented a contracting strategy to the Government and commenced well preparation procedures indicating that it was in the process of resuming petroleum operations.

However, in opposition to its previous actions, Tullow in an Operating Committee Meeting on November 18, 2015, revealed that petroleum operations will not continue except Dana funds its share of well expenses, but Dana declined.

On December 16, 2015, the government of Guinea agreed to amend the PSC in line with the exact title guarantees recommended by Dana and agreed to by Tullow. Hyperdynamics implemented the amendment while Tullow and the country’s Ministry of Mines and Geology initialed the document, but both parties till date still did not sign the agreement, Offshore Energy Today reports.

Anita Fatunji