Tullow Oil - comment

There are several headlines concerning the ongoing court case between Tullow and Vallourec, but in reality, the litigation remains at a very early stage and is unlikely to have any material impact on Tullow’s efforts to refinance its balance sheet.

The dispute relates to a 2008 contract for the supply of tubing for six water-injection wells. Tullow alleges that the supplied equipment was defective and is seeking $257.48m in damages. The parties pursued mediation in 2015, but this was unsuccessful, and Tullow proceeded to file its claim in 2023. A judge has since ruled that the case may proceed. Vallourec’s counsel has indicated that the company intends to appeal the decision, arguing that there is no substantive case to answer.

We have found only one previous reference by Tullow to this litigation, disclosed in May 2025 in connection with the sale of its Gabon assets. That disclosure also noted that the claim is being funded by a third-party litigation funder.