DALLAS--(BUSINESS WIRE)--Jul. 18, 2018--
Kosmos Energy (NYSE: KOS) (LSE: KOS) announced today that its subsidiary
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. The tribunal’s
Final Award in the arbitration was delivered to the parties by the
International Chamber of Commerce on July 17, 2018.
As a consequence of the arbitration award, Kosmos will not be required
to fund Kosmos’ portion of Tullow’s liability to Seadrill, estimated by
Tullow to be approximately $50,800,000. 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.
In June 2016, Kosmos Energy Ghana HC filed a Request for Arbitration
with the International Chamber of Commerce against Tullow Ghana Limited
in connection with a dispute arising under the Deepwater Tano Joint
Operating Agreement. At dispute was Kosmos Energy Ghana HC’s
responsibility for expenditures arising from Tullow Ghana Limited’s
contract with Seadrill for use of the West Leo drilling rig once
partner-approved 2016 work program objectives were concluded. Tullow
sought to charge such expenditures to the Deepwater Tano joint account.
Kosmos disputed that these expenditures were chargeable to the Deepwater
Tano joint account on the basis that the Seadrill West Leo drilling rig
contract was not approved by the Deepwater Tano operating committee
pursuant to the Deepwater Tano Joint Operating Agreement, and that the
Seadrill West Leo drilling rig contract had not been entered into in
connection with joint operations.
About Kosmos Energy
Kosmos is a well-capitalized, pure play deepwater oil and gas company
with growing production, a pipeline of development opportunities and a
balanced exploration portfolio along the Atlantic Margins. Our assets
include growing production offshore Ghana and Equatorial Guinea, a
competitively positioned Tortue gas project in Mauritania and Senegal
and a sustainable exploration program balanced between proven basins
(Equatorial Guinea), emerging basins (Mauritania, Senegal and Suriname)
and frontier basins (Cote d'Ivoire and Sao Tome and Principe). As an
ethical and transparent company, Kosmos is committed to doing things the
right way. The Company’s Business
Principles articulate our commitment to transparency, ethics, human
rights, safety and the environment. Read more about this commitment in
the Kosmos Corporate
Responsibility Report. For additional information, visit www.kosmosenergy.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that Kosmos expects, believes
or anticipates will or may occur in the future are forward-looking
statements. Kosmos’ estimates and forward-looking statements are mainly
based on its current expectations and estimates of future events and
trends, which affect or may affect its businesses and operations.
Although Kosmos believes that these estimates and forward-looking
statements are based upon reasonable assumptions, they are subject to
several risks and uncertainties and are made in light of information
currently available to Kosmos. When used in this press release, the
words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or
other similar words are intended to identify forward-looking statements.
Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of Kosmos, which may
cause actual results to differ materially from those implied or
expressed by the forward-looking statements. Further information on such
assumptions, risks and uncertainties is available in Kosmos’ Securities
and Exchange Commission (“SEC”) filings. Kosmos undertakes no obligation
and does not intend to update or correct these forward-looking
statements to reflect events or circumstances occurring after the date
of this press release, except as required by applicable law. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. All
forward-looking statements are qualified in their entirety by this
cautionary statement.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180717006075/en/
Source: Kosmos Energy
Kosmos Energy
Investor Relations
Jamie Buckland, +44
(0) 203 954 2831
jbuckland@kosmosenergy.com
or
Rhys
Williams, +1-214-445-9693
rwilliams@kosmosenergy.com
or
Media
Relations
Thomas Golembeski, +1-214-445-9674
tgolembeski@kosmosenergy.com
