Ugandan deal to allow Tullow proceed

TULLOW OIL has signed a critical Memorandum of Understanding with the Government of Uganda after several months of discussions.

This agreement satisfies the Ugandan authority’s taxation concerns and enables Tullow, China National Offshore Oil Corporation (CNOOC) and Total SA to proceed with the basin-wide development with the full support and commitment of the Ugandan government.

The memorandum provides a process which both parties say will result in a resolution of the impasse created by the Heritage and Tullow tax situations some time back.