Seadrill Ghana Operations Ltd v Tullow Ghana Ltd [2018]

Commercial Court
Written By Louise Glover

Seadrill Ghana Operations Ltd v Tullow Ghana Ltd [2018] EWHC 1640 - 03 July 2018 (Teare J)

“By a 5-year 2013 contract, Seadrill agreed to provide drilling services to Tullow by a semi-submersible tug, in specified sea areas off Ghana. In2014, an UNCLOS tribunal ordered Ghana to stop drilling with the effect that from late 2016 Tullow woul…

“By a 5-year 2013 contract, Seadrill agreed to provide drilling services to Tullow by a semi-submersible tug, in specified sea areas off Ghana. In2014, an UNCLOS tribunal ordered Ghana to stop drilling with the effect that from late 2016 Tullow would not be able to exploit the relevant areas. Tullow ceased to pay hire and terminated the contract relying on a term excusing performance if fulfilment of the contract was delayed or prevented by defined 'force majeure' events. The Court found that although there was a force majeure event as defined (drilling moratorium) it had to be the sole cause of the party's failure to perform. Here however there were two concurrent causes preventing performance and the other (government failure to approve a wider plan), was held to be the effective one.”

Louise Glover
E. G. Arghyrakis & Co.
11th July 2018

Louise Glover
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