A final investment decision on the Uganda export pipeline can finally go ahead in the middle of the year as the government and Tullow have reached a compromise over their tax dispute.Tullow previously agreed to sell the majority of its stake to partners Total and CNOOC for up to US $900m with $200m in cash and $700m to cover Tullow's share of development costs.The tax authorities wanted capital gains tax to be paid on the full amount while Tullow argued it should only be paid on $200m as the rest of the money is being reinvested in Uganda."We have agreed very clear principles about how to close the deal,we have jumped over the last hurdle,”said Tullow chief executive Paul McDade last week,adding:”You have to put a deal on the table that is good for all stakeholders.It's a big step forward,it is good for Tullow and good for Uganda.”
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