Seadrill Partners has banked $248m from its court case involving the early termination of the drilling rig West Leo.
“This is a wonderful result for Seadrill," said Glenn Kangisser, partner at Haynes and Boone CDG representing Seadrill.
The subsidiary of John Fredriksen's restructured Seadrill was awarded $273m earlier this month by the UK high court for Tullow Oil's ending of the unit's contract.
It ruled that Tullow Ghana was not entitled to terminate the agreement on 4 December 2016 by invoking its force majeure provisions.
"The ruling underscores that English courts won’t let parties escape a bargain because of a turn in the market," Kangisser said.
"Disputes of this nature are typically arbitrated rather than ligated before the courts therefore today’s public decision will serve as a rare guidepost for energy companies.”
As such, Tullow must pay Seadrill a contractual termination fee and other standby fees that accrued 60 days before the contract's close, both companies said.
Those fees amount to approximately $254m, which Tullow was expected to pay within 14 days.
Tullow spokesman George Kasenove declined to comment further on the case beyond what the company said in a news release issued two weeks ago.
"We are disappointed with the decision and maintain the view that it was right to terminate the West Leo contract for force majeure," the company said.
Tullow also said at the time that it may appeal the decision, but Seadrill said today that Tullow would not appeal the English high court decision.
Tullow will now examine its options, including seeking leave to appeal the judgment.
Tullow had said it was liable for a net amount of $140m and last year set aside $128m in anticipation of the expected judgment.
Seadrill said it sought early termination fees totaling $278m plus interest and legal costs.
Seadrill will use part of the judgment proceeds for prepayment of $100m to $124m on a $2.8bn term loan.
