Tullow Asserts Force Majeure Event on Offshore Guinea Project
Hyperdynamics Corporation (NYSE: HDY) announced that Tullow Guinea Limited (“Tullow”) asserted on March 11, 2014 to the Government of Guinea and members of the Consortium its claim that there has been a Force Majeure event under the Production Sharing Contract (PSC) and the Joint Operating Agreement (JOA). The members of the Consortium and their participating interests in the Concession from the Government of Guinea granting exploration rights offshore Guinea are Tullow – 40%, Hyperdynamics’ subsidiary, SCS Corporation – 37% and Dana Petroleum (E&P) Limited – 23%.
Tullow states in its notice that the decisions by the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) to open investigations into the activities of Hyperdynamics in obtaining and retaining the Concession rights (publicly disclosed by Hyperdynamics on September 30, 2013 (DOJ) and February 7, 2014 (SEC)) constitute a Force Majeure event under the terms of the PSC and JOA. Tullow states in its notice that the asserted Force Majeure event prevents Tullow from performing its contractual obligations under the PSC.
Hyperdynamics is unable to predict the outcome or timing of the results of Tullow’s assertion of the Force Majeure.