Seadrill provides update on West Leo early termination litigation
LONDON -- Seadrill Partners LLC has announced that Tullow Ghana Limited will not be appealing the English High Court ruling in favor of Seadrill Ghana Operations Limited, relating to the early termination of the West Leo contract and Seadrill Ghana has received approximately $248 million, inclusive of interest, but net of withholding tax, VAT and legal expenses.
Under the terms of the amendments to our $2.8-billion Term Loan B (TLB) credit agreement completed in February 2018, we agreed to use a portion of the judgement proceeds after deducting certain litigation costs and taxes (Net Litigation Proceeds) for a par pre-payment of the TLB. We expect to finalize the determination of the Net Litigation Proceeds in due course, and a $100-to-$124-million pre-payment to be made within five business days of determining the Net Litigation Proceeds.
