BP and Kosmos Energy are seeking “maximum recoverable damages” of about $535 million in binding arbitration with contractor McDermott International over a claim that it failed to meet contract obligations on subsea pipeline installation for an estimated $4.8 billion liquefied natural gas project off Africa.
Kosmos noted the dispute in its fourth-quarter results call last month, estimating its share of recoverable damages at $160 million related to the Greater Tortue Ahmeyim natural gas project offshore of Mauritania and Senegal. BP served McDermott with a claim notice and initiated the process under an agreement to recover the losses incurred, Kosmos said.