National

Tullow oil wins Heritage appeal case

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By Isaac Imaka

Posted  Wednesday, July 23   2014 at  14:44
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KAMPALA:

Less than a week after losing a shs1 trillion case to URA, Tullow has received judgment in its favour in the London Court of Appeal.
In June 2013, the London High Court ruled in favour of Tullow Oil’s indemnity claims against Heritage Oil company with regard to capital gains tax payment worth $345.8 million (shs907 billion) Tullow had paid to Uganda on heritage’s behalf.
In September 2013, Heritage was granted permission by the Court of Appeal to appeal certain aspects of the High Court judgment and the appeal was heard in May 2014.
In its judgment on Wednesday, the Court of Appeal ruled in Tullow’s favour on all but one of the grounds appealed by Heritage.
This point relates to part of one of Tullow’s indemnity claims and will require Tullow to repay to Heritage approximately $2.5 million plus some interest.
iimaka@ug.nationmedia.com