Uganda oil dispute delays firm’s partial exit

A $900m dispute between Tullow Oil and the Uganda Government over the law governing taxation of the sale of shares has emerged. The latest stand-off is expected to further delay Tullow's sale of its equity in upstream and midstream oil and gas operations. The delay to conclude the deal implies Tullow will not act on its planned partial exit. The dispute relates to Tullow's application for a private ruling to determine whether the proposed transaction was taxable or not as the Uganda Revenue Authority claims. ‘We are still in negotiations, but there is a dispute. We want our money paid before the deal is concluded,’ said Robert Kasande, permanent secretary in the Energy Ministry. Sources told The East African that the authority is seeking one-third of the $900m transaction. Uganda has 6.5bn barrels of oil, with between 1.4 and 1.7bn recoverable.

Full report in The East African