Tullow Oil has sued its former partner in Uganda, Heritage Oil, to recover $313 million which Tullow paid to cover tax on fields it bought from Heritage.
Uganda said Heritage was liable for capital gains taxes on the sale, which the Jersey-based company, led by former boss Tony Buckingham, denies.
Tullow paid the government the $313 million to secure approval of the change in field ownership, and is now seeking to get the money back from Heritage through the High Court in London.
"Tullow has a duty to its shareholders to seek reimbursement and shift liability back to Heritage," a spokesman said. Heritage Oil shares were down 3 percent lower earlier.
"This tax issue has been a significant burden on both companies since the original transaction was announced .. this
situation looks likely to be an ongoing burden for some time," Dougie Youngson, oil analyst at Arbuthnot, said.
Heritage said it was seeking the release of over $283 million it placed in escrow pending the outcome of arbitration with Kampala over the tax claim, saying since Tullow had paid the government, no cash was due.
PA