Contractual BreachThe arbitration tribunal found that VGCP had breached its obligations to declare COD of the Calcasieu Project in a timely manner and act as a 'Reasonable and Prudent Operator' pursuant to the SPA.
Legal ChallengesBP is seeking damages in excess of $1.0 billion, as well as interest, costs, and attorneys’ fees.
Strategic UncertaintyThere may be more uncertainty around whether VG’s strategy of selling cargoes while building can continue, potentially lowering profits and project IRRs.