Tullow Oil plc has announced that Tullow Uganda Limited, its Ugandan subsidiary, has received judgment in its favour in the proceedings against Heritage Oil and Gas Ltd and Heritage Oil Plc in the Court of Appeal in London (Case No: 2013/2175).
In June 2013, Tullow succeeded in the High Court in London with its indemnity claims against Heritage with regard to Capital Gains Tax payments that Tullow had made on Heritage’s behalf to the Uganda Revenue Authority. In August 2013, Tullow received $345.8 million from Heritage in satisfaction of this High Court judgment.
In September 2013, Heritage was granted permission by the Court of Appeal to appeal certain aspects of the High Court judgment and the appeal was heard in May 2014. In its judgment, the Court of Appeal ruled in Tullow’s favour on all but one of the points appealed by Heritage.
This point relates to part of one of Tullow’s indemnity claims and will require Tullow to repay to Heritage approximately $2.5 million plus some interest. In all other respects the Court of Appeal has upheld the High Court’s judgment.
Tullow has already accounted for the receipt of $345.8 million in its 2013 Annual Report and Accounts[twitter-follow screen_name=’oilnewskenya’]