UK distances self from oil tax row
Sep 14, 2010
THE UK has distanced itself from the oil tax dispute between British oil companies and Uganda, choosing to stay silent on the issue. Uganda is demanding over $404m, emanating from the sale of its huge oil assets by British firm, Heritage Oil.
By Ibrahim Kasita
THE UK has distanced itself from the oil tax dispute between British oil companies and Uganda, choosing to stay silent on the issue. Uganda is demanding over $404m, emanating from the sale of its huge oil assets by British firm, Heritage Oil.
Heritage sold the oil fields to the UK oil explorer, Tullow Oil, at $1.5b without the Government’s consent.
“We don’t want to comment on the taxation matters,†Martin Shearman, the British high commissioner to Uganda, said yesterday while responding to a journalist’s question about the UK’s taxation policies guiding its oil companies, which are doing business across the world.
“We are here for the oil and gas trade mission. Let’s stay at that,†he added at a press briefing about the first UK oil and gas trade mission to Uganda.
It is organised by the Aberdeen Business Centre and the British High Commission. But President Yoweri Museveni has warned foreign oil companies against tax evasion.
“We have made it clear to the oil companies operating in Uganda that all the taxes due to the Government must be paid,†he said.
“The other development programmes in the petroleum sector must also be fulfilled.†The delegation, on a one-week mission, represents a cross section of the UK oil and gas sector.
The delegation will visit Kampala and the Rift Valley Lake Albert region, which is at the centre of oil development. “The fast pace of exploration of Uganda’s oil reserves has continued unabated during 2010,†Jon Woodwards, the Aberdeen and Cramption Chamber of Commerce international business director, said.
“UK companies are showing a strong interest in prospecting this exciting market, which continues to be buoyed by further oil discoveries. Woodwards said with the existence of such substantial oil reserves, Uganda’s position as an important future African producer was assured.
The visit comes at a time when various energy-thirsty countries and international companies are flocking Uganda to obtain concessions in the oil-rich Lake Albert Basin.
Italy, Russia, India, Nigeria, Trinidad and Tobago, Libya, South Africa and UK have all indicated their interest.
THE UK has distanced itself from the oil tax dispute between British oil companies and Uganda, choosing to stay silent on the issue. Uganda is demanding over $404m, emanating from the sale of its huge oil assets by British firm, Heritage Oil.
Heritage sold the oil fields to the UK oil explorer, Tullow Oil, at $1.5b without the Government’s consent.
“We don’t want to comment on the taxation matters,†Martin Shearman, the British high commissioner to Uganda, said yesterday while responding to a journalist’s question about the UK’s taxation policies guiding its oil companies, which are doing business across the world.
“We are here for the oil and gas trade mission. Let’s stay at that,†he added at a press briefing about the first UK oil and gas trade mission to Uganda.
It is organised by the Aberdeen Business Centre and the British High Commission. But President Yoweri Museveni has warned foreign oil companies against tax evasion.
“We have made it clear to the oil companies operating in Uganda that all the taxes due to the Government must be paid,†he said.
“The other development programmes in the petroleum sector must also be fulfilled.†The delegation, on a one-week mission, represents a cross section of the UK oil and gas sector.
The delegation will visit Kampala and the Rift Valley Lake Albert region, which is at the centre of oil development. “The fast pace of exploration of Uganda’s oil reserves has continued unabated during 2010,†Jon Woodwards, the Aberdeen and Cramption Chamber of Commerce international business director, said.
“UK companies are showing a strong interest in prospecting this exciting market, which continues to be buoyed by further oil discoveries. Woodwards said with the existence of such substantial oil reserves, Uganda’s position as an important future African producer was assured.
The visit comes at a time when various energy-thirsty countries and international companies are flocking Uganda to obtain concessions in the oil-rich Lake Albert Basin.
Italy, Russia, India, Nigeria, Trinidad and Tobago, Libya, South Africa and UK have all indicated their interest.