{"id":3098,"date":"2015-06-22T16:59:01","date_gmt":"2015-06-22T16:59:01","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=3098"},"modified":"2015-06-22T16:59:01","modified_gmt":"2015-06-22T16:59:01","slug":"tullow-oil-agrees-pay-uganda-government-108-million-end-tax-dispute","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-agrees-pay-uganda-government-108-million-end-tax-dispute\/","title":{"rendered":"Tullow Oil Agrees To Pay Uganda Government $108 million To End Tax Dispute"},"content":{"rendered":"

A tax row that has ensued between oil explorer Tullow Oil and the government of Uganda and the Uganda Revenue Authority in regards to two farm downs to China\u2019s CNOOC and Total may be nearing its end after Tullow agreed to pay $250 million in full and final settlement of its CGT liability.<\/p>\n

The payment comprises $142 million that Tullow paid in 2012 and $108 million to be paid in three equal installments of $36 million starting 2016 and 2017.<\/p>\n

The agreement to pay the sum also brings to an end legal proceedings ongoing at the Ugandan High Court and an international arbitration that commenced in 2013 after\u00a0 the URA assessed the CGT payable at $473 million and an assessment by the Uganda Tax Appeals Tribunal (‘TAT’) that and assessed Tullow’s CGT liability for the farm-downs at $407 million less $142 million previously paid.<\/p>\n

In the ruling<\/a> by TAT the tribunal ruled against Tullow on the key issue of the express tax exemption contained in the Production Sharing Agreement for Exploration Area 2 (EA2 PSA) whereas Tullow said it believed that the amount already paid exceeded its liabilities in relation to CGT on EA1 and EA3A.<\/p>\n

In its 2014 accounts, Tullow recorded a contingent liability of $265 million in relation to the dispute.<\/p>\n

According to Tullow Oil CEO Aidan Heavey both proceedings has been withdrawn even as the company hopes that proposed tax regime changes in the country will make the Albertine region more attractive to investors even as the East African country prepares to enter the development phase.<\/p>\n

‘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,’ he said.<\/p>\n

Tullow Oil has also faced off with Heritage Oil in regards to indemnity claims against Heritage with regard to Capital Gains Tax payments that Tullow had made on Heritage\u2019s behalf to the Uganda Revenue Authority which the London high court ruled<\/a> in Tullow\u2019s favor.<\/p>\n","protected":false},"excerpt":{"rendered":"

A tax row that has ensued between oil explorer Tullow Oil and the government of Uganda and the Uganda Revenue Authority in regards to two farm downs to China\u2019s CNOOC … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":1473,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7,11],"tags":[3338,476,1078,1366,2491,2533,2571,2603,2611,3339],"class_list":["post-3098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-politics","category-top-news","tag-capital-gains","tag-cnooc","tag-heritage-oil","tag-lake-albert","tag-tax","tag-total","tag-tullow-oil","tag-uganda","tag-uganda-revenue-authority","tag-uganda-tax-appeals-tribunal","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/tullow-uganda.jpg?fit=553%2C369&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-NY","jetpack-related-posts":[{"id":1471,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-to-challenge-the-tax-appeals-tribunal-ruling-in-uganda\/","url_meta":{"origin":3098,"position":0},"title":"Tullow Oil to challenge the Tax Appeals Tribunal ruling in Uganda","author":"Samuel Kamau Mbote","date":"July 17, 2014","format":false,"excerpt":"Tullow Oil plc has announced that its subsidiaries operating in Uganda have received a ruling from the Tax Appeals Tribunal (TAT) in Uganda relating to Capital Gains Tax (CGT). The ruling means that Tullow will be tasked with be paying the reminder of $265m to the Uganda revenue authority (URA)\u2026","rel":"","context":"In "Oil products"","block_context":{"text":"Oil products","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/oil-products\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/tullow-uganda.jpg?fit=553%2C369&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/tullow-uganda.jpg?fit=553%2C369&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/tullow-uganda.jpg?fit=553%2C369&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":9305,"url":"https:\/\/www.oilnewskenya.com\/index.php\/uganda-tullow-oil-receives-approval-575-million-asset-sale-to-total\/","url_meta":{"origin":3098,"position":1},"title":"UGANDA: Tullow Oil Receives Approval $575 million Asset Sale to Total","author":"","date":"October 23, 2020","format":false,"excerpt":"Tullow Oil plc has announced that the Government of Uganda and the Ugandan Revenue Authority have executed a binding Tax Agreement that reflects the pre-agreed principles on the tax treatment of the sale of Tullow\u2019s Ugandan assets to Total. Tullow further announces that the Ugandan Minister of Energy and Mineral\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/10\/Uganda-oil-blocks.jpg?fit=640%2C568&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/10\/Uganda-oil-blocks.jpg?fit=640%2C568&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/10\/Uganda-oil-blocks.jpg?fit=640%2C568&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":8128,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-offloads-uganda-assets-to-total\/","url_meta":{"origin":3098,"position":2},"title":"Tullow Oil Offloads Uganda Assets to Total","author":"","date":"April 23, 2020","format":false,"excerpt":"Tullow and Total E&P Uganda B.V. (Total Uganda) have signed a Sale and Purchase Agreement (SPA), with an effective date of 1 January 2020 (the Effective Date), in which Tullow has agreed to transfer its entire interests in Blocks 1, 1A, 2 and 3A in Uganda and the proposed East\u2026","rel":"","context":"In "Eastern Africa"","block_context":{"text":"Eastern Africa","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/eastern-africa\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8216,"url":"https:\/\/www.oilnewskenya.com\/index.php\/cnooc-elects-not-to-pre-empt-sale-of-assets-in-uganda\/","url_meta":{"origin":3098,"position":3},"title":"CNOOC elects not to pre-empt sale of assets in Uganda","author":"","date":"May 28, 2020","format":false,"excerpt":"Tullow has announced that it had agreed the sale of its assets in Uganda to Total and that CNOOC had rights of pre-emption to acquire 50% of these assets on the same terms and conditions as Total. The company says CNOOC has now informed it and JV partner Total that\u2026","rel":"","context":"In "Eastern Africa"","block_context":{"text":"Eastern Africa","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/eastern-africa\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/05\/Uganda-rig.jpg?fit=699%2C466&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/05\/Uganda-rig.jpg?fit=699%2C466&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/05\/Uganda-rig.jpg?fit=699%2C466&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":7769,"url":"https:\/\/www.oilnewskenya.com\/index.php\/total-sa-suspends-investment-plans-in-the-east-africa-crude-oil-pipeline\/","url_meta":{"origin":3098,"position":4},"title":"Total SA Suspends Investment Plans in the East Africa Crude Oil Pipeline","author":"","date":"September 6, 2019","format":false,"excerpt":"Total SA has suspended plans to build the 1445 kilometer East Africa Crude Oil pipeline from Hoima (Uganda) to Tanga in Tanzania citing frustrations by the Uganda government in completion of the Tullow Oil deal sources say. The shelving of the $3.5 billion crude export project by the French Giant\u2026","rel":"","context":"In \"East Africa crude oil pipeline\"","block_context":{"text":"East Africa crude oil pipeline","link":"https:\/\/www.oilnewskenya.com\/index.php\/tag\/east-africa-crude-oil-pipeline\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/EACOP-route.jpg?fit=632%2C563&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":5536,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-announces-900m-farm-down-of-uganda-assets-to-total\/","url_meta":{"origin":3098,"position":5},"title":"Tullow Oil announces $900M farm down of Uganda assets to Total","author":"","date":"January 9, 2017","format":false,"excerpt":"A Sale and Purchase Agreement with an effective date of 1\u00a0January 2017 has been signed in which Tullow has agreed to transfer 21.57% of its 33.33% interests in Exploration Areas 1, 1A, 2 (operated by Tullow Oil) and 3A in Uganda to Total for a total consideration of $900 million.\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/tullow-oil.png?fit=385%2C255&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/3098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=3098"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/3098\/revisions"}],"predecessor-version":[{"id":3099,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/3098\/revisions\/3099"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/1473"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=3098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=3098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=3098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}