Tullow confident about tax ruling

Tullow Oil is confident the Dutch-based International Arbitration Court will overturn a ruling by the Ugandan Tax Appeal Tribunal saying it owes a further $260m in unpaid tax regarding the 2012 farm-out of assets.

Tullow farmed out 66% of those assets to Chinese State oil firm, CNOOC and French utility, Total in 2012. The company recently won a separate ruling, in London’s Court of Appeal, relating to capital gains tax linked with the initial purchase of the assets from Canadian firm, Heritage Oil & Gas two years earlier.

The secondary case could take up to a year to appeal, but is likely to reach the IAC for a final ruling.