Africa Business Communities

Tullow Files Suit Against Uganda

For those who hoped that once Uganda passed its upstream oil industry bill there would be no more contractual angst to be reported on out of the country are doomed for disappointment. Tullow Oil, the country’s most successful explorer has filed a new tax dispute in the US against the Ugandan government over levies imposed on machinery it imports for oil exploration, a company official said according to a Dow Jones Newswire report.

The Irish independent filed with World Bank-affiliated International Center for Settlement of Investment Disputes, said Jimmy Mugerwa, Tullow’s general manager in Uganda. Tullow is challenging the Ugandan government's decision to levy an 18% value-added tax on of its imported machinery as well as other supplies into the country, he said.

A government official, who declined to be named said, "The position of the government is that Tullow should not claim taxes on supplies as recoverable costs before oil production starts."

This latest squabble between an oil company and the government could further delay the start-up of oil production in the Lake Albertine rift basin.

http://www.tullowoil.com/

Be Sociable, Share!

Follow us on Twitter!

www.twitter.com/africabizz
https://twitter.com/Quantusbabes                                                      www.twitter.com/BizNewsGhana                                                                             https://twitter.com/AfricaOilBiz

Share this article