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Vol 54 No 13

Published 21st June 2013


Tullow wins tax tussle

Heritage Oil and Gas faces a US$313 million bill after its battle with Tullow Oil in London's High Court

Tullow Oil has won its bid to recover US$313 million from Heritage Oil and Gas, following their dispute over a $434 mn. Ugandan tax bill. Tullow shared ownership of two blocks in the Lake Albert oilfield with Heritage before buying out its partner in 2010 for $1.45 billion. It paid Uganda the tax on Heritage’s behalf after it denied liability. Claiming there was no provision in its contract for capital gains tax, Heritage had paid Uganda only 30% of the total and gave a bank guarantee for the remaining 70%, pending arbitration (AC Vol 51 No 14, A taxing compromise). Tullow then sued Heritage for the outstanding sum.

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