RE: RE: Cmon tullow you peice of sheet let's see 60p this year5 Jan 2022 09:46
From the HY 2021 results.... not sure if there have been any further updates on this:
Other contingent liabilities
This includes amounts for ongoing legal disputes with third parties where we consider the likelihood of cash outflow to be higher than remote but not probable. The timing of any economic outflow if it were to occur would likely range between one and five years.
In January 2013, the Group acquired Spring Energy Norway AS (Spring) from HitecVision V (Hitec), a Norwegian private equity company, and Spring employee minority shareholders. In addition to the initial consideration payable under the sale and purchase agreement for Spring, the Group undertook to make contingent bonus payments to Hitec and the Spring employee minority shareholders in the event of the discovery on or before 31 December 2016 of commercially viable reserves from four identified drilling prospects (including the Wisting prospect in licence PL537).
In September 2013, OMV Norge AS, the operator of PL537, announced that it had made a discovery by drilling the Wisting prospect.
Hitec claims that the conditions for a bonus payment under the Spring SPA had been met in respect of the Wisting prospect in PL537 as at December 2016. Tullow has disputed this position. An arbitration was commenced in Norway to determine if a bonus payment is payable in respect of the Wisting discovery and a decision is expected to be made in late 2021. Hitec has claimed US$95 million,
including interest(which Tullow has disputed). This claim amount is based on a preliminary calculation that is subject to update.
In 2016, the Group sold its interest in PL537 to Equinor but remains responsible for this dispute.
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