Wednesday, July 16 16:13:13
A Ugandan court has ordered Irish-owned explorer Tullow Oil to pay $407 million in relation to a 2012 sale of oil field stakes, the company said today.
One industry source told Reuters Tullow Oil had already paid $142 million of that amount, which relates to its disposal of stakes in Ugandan oil fields to the China National Offshore Oil Corporation and France's Total.
Tullow said this afternoon that it believes that this amount already paid exceeds its liabilities in the case.
“Tullow is very concerned by this ruling which ignores a contractual term signed by a Government Minister in Uganda. Tullow is Uganda’s largest foreign investor and a major taxpayer. Over the last 10 years, Tullow has spent $2.8 billion in Uganda and discovered 1.7 billion barrels of oil. This money was spent by Tullow on the understanding that our contracts with the Government, which contained important incentives to invest that were vital at a time when no oil had been discovered in Uganda, would be honoured. We will now carefully consider all our options to robustly challenge this ruling," its CEO Aidan Heavey said.