- Posted February 20, 2013 by
Hard times at Tullow Oil
The Ugandan Revenue Authority demanded a $473 levy on the deal, though Tullow have predictably disputed this. According to Ugandan law, 30% of that fee is required to dispute the assessment and so Tullow have paid $142 million to escalate the incident, with a decision expected to be made later in 2013.
Tullow is also fighting a second capital gains tax dispute in London with another oil firm in an attempt to recover capital gains charges it paid after acquiring the oil firm’s Ugandan assets for $1.35 billion.
Additionally in Uganda, Tullow is locked in another tax dispute with the government after VAT was placed on machinery the firm imported into the country. This case has been filed in the International Centre for Settlement of Investment Disputes (ICSID), the World-bank created institution based in Washington.
These woes add to the pressure mounting on Tullow’s CEO and founder, Aidan Heavey, to step down; despite his steady tenure over the years, there are real concerns that he is not the man to turn the firm into the oil producer it is aspiring to be.