Tullow seeks indemnification from Heritage over tax payments

Tullow is seeking indemnification from Heritage Oil & Gas over capital gains tax it paid to the Ugandan government in 2010. The dispute dates back to Tullow’s acquisition of Heritage’s rights and interests in two Ugandan petroleum exploration areas in the Lake Albert Rift Basin, Blocks 1 and 3A, for $1.45m almost three years ago. The Ugandan Revenue Authority (URA) levied a $404m tax on the transaction, for which Heritage said it was not liable, so that Tullow ended up paying.