Tullow, Heritage Oil Tax Discrepancy Ends in $287 Million Payout

Written by Makula Dunbar

Aug 02, 2013

Tullow Oil Plc (TLW) received $287 million from an escrow account following a tax dispute with Heritage Oil Plc (HOIL) over the sale of assets in Uganda in 2010.

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.