TLW Tullow Oil Plc

By Alex MacDonald

LONDON--Lead Insurers has agreed to pay an insurance claim submitted by Tullow Oil PLC (TLW.LN) for lost profits from the 35%-owned Jubilee field following the failure of a turret bearing earlier this year.

This follows on from last week's announcement in which Hull and Machinery confirmed insurance payment for the floating production, storage and offloading vessel that serves the Jubilee field.

Production at the field, which is situated offshore Ghana, has been dented since March after Tullow discovered the turret bearing was damaged.

The plan, which needs approval from the Ghanian government, would result in the company spending between $305 million to $355 million (excluding fees related to a buoy) on the field this year and next. The costs, including production losses, would be recouped via insurance, the company said.

This prompted Jubilee to cut the group's 2016 production forecast to between 62,000-68,000 barrels of oil equivalent a day following problems with Jubilee's production platform.

Tullow said it will continue to work closely with the loss adjusters and insurers to establish an efficient payments schedule as remedial work continues.

-Write to Alex MacDonald at alex.macdonald@wsj.com

(END) Dow Jones Newswires

September 30, 2016 02:58 ET (06:58 GMT)

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