22nd Jun 2015 06:17
LONDON (Alliance News) - Tullow Oil PLC on Monday said it has reached a capital gains tax settlement with the government of Uganda with regards to the farm-down deals it completed with CNOOC and Total SA in 2012.
Tullow said it has reached an agreement with the Ugandan government and the Uganda Revenue Authority to pay USD250 million in full and final settlement on its capital gains tax liability.
The amount includes USD142 million Tullow paid in 2012 and USD108 million which will be paid in three instalments. The first of the instalments has already been paid, with the rest to be paid in 2016 and 2017.
"The settlement of this long-running dispute is good news for Tullow and Uganda. In recent months, the government of Uganda has proposed welcome and necessary changes to its tax regime for oil and gas investments which it is hoped will enable substantive progress to be made towards the sanction of the Lake Albert oil development," said Aidan Heavey, the chief executive of the FTSE 250-listed oil and gas explorer.
By Sam Unsted; [email protected]; @SamUAtAlliance
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