Heritage Oil 'concerned' about press attention over Uganda tribunal

Heritage Oil, an independent upstream exploration and production company which has recently been embroiled in international arbitration proceedings with the Republic of Uganda, said it was 'delighted' by the decision made by the tribunal.

Heritage Oil, an independent upstream exploration and production company which has recently been embroiled in international arbitration proceedings with the Republic of Uganda, said it was 'delighted' by the decision made by the tribunal.

The tribunal concluded that it does not have jurisdiction to hear arguments relating to the substantive Ugandan tax matters, which were brought to its attention by the government.

Heritage said it is still reviewing the decision, but is concerned that recent press comments attributed to the Ugandan government and/or the Uganda Revenue Authority are a "misleading representation of a detailed decision".

The decision by the tribunal is meant to be confidential, but Heritage is "concerned" that press comments attributed to the Ugandan authorities regarding the arbitral decision are inaccurate as well as being breaches of the requirement of confidentiality.

The company added that $283.4m that it placed in escrow in July 2010 relating to any potential Ugandan tax liability remains there, and that at the same time deposited $121.5m with the Ugandan government, meaning the majority of the cash has been reserved and as such will not have an impact on its current cash position.

The share price fell 5.46% to 167.90p.

NR

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