Tullow Oil confirms it can claim for Jubilee field issue
By Michele Maatouk
Date: Friday 30 Sep 2016
(ShareCast News) - Tullow Oil said on Friday that it has received confirmation from its lead insurers that there is a recoverable claim with respect to the group's corporate policy for Business Interruption insurance following damage to the Jubilee turret bearing earlier this year.
The news follows an announcement earlier this month that hull and machinery cover for the floating production, storage and offloading vessel on the Jubilee field offshore Ghana had been confirmed following the failure earlier this year of the turret bearing.
Tullow said the Business Interruption policy, which is procured for Tullow's interest in its major producing assets, covers loss of revenues as a result of production outages. Cover includes production losses at the Jubilee Field associated with the failure of the bearing and the downtime associated with the work programme to re-establish normal operations.
"Tullow will continue to work closely with the loss adjusters and insurers to establish an efficient payments schedule as remedial work continues," it said, adding that an update on the progress of this project will be provided in its next trading statement in November.
Back in April, the FTSE 250 group announced that there had been damage to the turret bearing but said it did not expect this to have any significant impact on revenue.
Tullow had already signalled a potential problem at the field a couple of months before that, saying at the time that oil production and gas export would continue as normal.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN