Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Shares  >  Irish Stock Exchange  >  Tullow Oil plc    TLW   GB0001500809

TULLOW OIL PLC (TLW)

1
SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Tullow Oil Refers Fresh Ugandan Tax Dispute for Arbitration

12/17/2012 | 05:38am US/Eastern
   By Nicholas Bariyo 
    
 

KAMPALA, Uganda--U.K.-based Tullow Oil PLC (>> Tullow Oil plc) has registered a fresh tax dispute in the U.S. against the Ugandan government over levies imposed on machinery it imports for oil exploration activities in the country, a company official said Monday,

The case has been filed with World Bank-affiliated International Centre for Settlement of Investment Disputes, said Jimmy Mugerwa, Tullow's general manager in Uganda. Tullow is challenging the Ugandan government's decision to levy an 18% value-added tax on of its imported machinery as well as other supplies into the country, he said.

A government official, who declined to be named, said: "The position of the government is that Tullow should not claim taxes on supplies as recoverable costs before oil production starts."

A hearing date for the case is yet to be fixed.

This is the latest spat between the exploration company and the east African nation and analysts say it could further hinder the already delayed startup of oil production in Uganda's Lake Albertine rift basin.

Uganda discovered oil in 2006 along its western border with Congo but a litany of disputes with oil companies continue to delay the development of oil fields which are believed to contain as much as 3.5 billion barrels of oil.

Uganda is facing a separate suit in London over its decision to levy a 30% tax on the $1.45 billion sale of Heritage Oil PLC (>> Heritage Oil PLC) assets in the country to Tullow in 2010. The tax spat compelled government to delay the approval of the deal for more than a year, delaying Tullow's own plans to sell part of the assets to France's Total SA (>> TOTAL S.A.) and China's Cnooc Ltd. (>> CNOOC Limited).

Write to Nicholas Bariyo at nicholas.bariyo@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Stocks mentioned in the article : Tullow Oil plc, TOTAL S.A., CNOOC Limited, Heritage Oil PLC
React to this article
Latest news on TULLOW OIL PLC
01:11a TULLOW OIL : optimistic half year forecast fails to push shares up
07/01DJEUROPE MARKETS : European Stocks Climb As Greece Presses On With Bailout Referen..
07/01DJEUROPE MARKETS : European Stocks Climb As Greece Presses On With Bailout Referen..
07/01DJUganda Selects 17 Oil Companies Selected for Second Bidding Round
07/01 TULLOW OIL : Use Tullow money to operationalize Petroleum Authority of Uganda
07/01DJTullow Sees 1st Half Profit More Than Halving Amid Lower Oil Prices
07/01 TULLOW OIL : Trading Statement and Operational Update
07/01 TULLOW OIL : Ups Production Guidance But Revenue Falls On Oil Price
07/01 TULLOW OIL : Ghanian oil technicians get training on Teesside
06/30 The perfect TEN for 15 technicians celebrating completion of their training w..
Advertisement
Chart
Duration : Period :
Tullow Oil plc Technical Analysis Chart | TLW | GB0001500809 | 4-Traders
Income Statement Evolution
More Financials