French energy company, Total, is seeking international arbitration over a tax disagreement with Uganda
French energy company, Total, is seeking international arbitration over a tax disagreement with Uganda which could further delay crude oil production in the East African country. “ Total E&P Uganda confirms that it has filed a request for arbitration before the International Centre for Settlement of Investment Disputes,” Total’s Ugandan said.
“The dispute relates to imposition of stamp duty by the Uganda Revenue Authority, on acquisition of Total’s interest in Exploration Area 2.
Uganda struck commercial hydrocarbon deposits along its border with the Democratic Republic of Congo in 2006 and crude reserves are estimated by government geologists at 6.5 billion barrels.
Commercial production, however, has been repeatedly delayed by previous disputes with other explorers over taxes and development plans.
In 2012, Total and China Offshore Oil Corporation (CNOOC) bought stakes from London-listed Tullow Oil in a $2.9 billion deal. The deal allowed Total and CNOOC to take up a third each in three exploration blocks.