Tullow Gets $287 Million After Uganda Tax Feud With Heritage
Stock Chart for Tullow Oil PLC (TLW)
Tullow agreed to pay about $1.5 billion for Heritage’s stakes in two Ugandan blocks three years ago. At the same time, it agreed to sell two thirds of the combined assets to Cnooc Ltd. (883) and Total SA (FP) for about $2.9 billion. The Ugandan government withheld approval until capital gains tax was paid.
“We’ve got the money into our account,” George Cazenove, a spokesman for Tullow, said by phone today. “The balance left is actually approximately $60 million, which needs to be paid by Aug. 25.”
Tullow, based in London, and its partners plan to invest more than $10 billion in Uganda to pump commercial oil volumes from 2016. Tullow may sell part of its stake in the fields once the development plan is approved by the government, Chief Executive Officer Aidan Heavey said last month.
Tullow in June won a London court ruling ordering Heritage to pay the cash. Heritage has the right to appeal until Aug. 5, Tullow said July 31.
A spokeswoman for Heritage declined to comment.
Tullow rose 0.2 percent to 1,068 pence in London. Heritage fell 1.8 percent.
To contact the reporters on this story: Eduard Gismatullin in London at email@example.com
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