who will be the next hardman, page-54

half yr report out today.
The only things I don't like are the continuing Ugandan cap gains tax drama which will prob'ly last for a decade in International courts and the London Court battle with Heritage Oil for return of the $341 million we paid on their behalf.
Close to US$700million out of pocket if both these Court issues go against TLW.

8. Acquisitions and disposals (continued)
Disposal of intangible assets

On 21 February 2012 the Group completed the farm-down of one third of its Uganda interests to both Total and CNOOC ("the partners") for a headline consideration of $2.9 billion. The Ugandan assets are classified as intangible exploration and evaluation assets and therefore the Group has formed an accounting policy under IAS 8 to account for the farm-down, whereby a profit has been recognised on disposal as the difference between total consideration and the value of the disposal assets. The following is a reconciliation of the consideration and the value of disposal assets disposed.

$m Headline consideration 2,933.3
Contingent consideration 341.3
Net book value of disposed assets (2,573.6)
Profit on disposal (701.0)

The contingent consideration represents the fair value of completion statement amounts due from the partners on issue of Final Investment Decision ("FID") in Uganda.

The total cash consideration received was $2.6 billion, with capital gains tax of $142 million being paid directly out of this amount. The $2.6 billion cash consideration received represents headline consideration of $2.9 billion less deposits received in 2011.

In anticipation of the farm-down of the Ugandan assets to CNOOC and Total, the Uganda Revenue Authority

(URA) issued an assessment for $473 million in respect of capital gains tax on the transaction. At completion,

$142 million was paid to the URA, being 30% of the tax assessed as legally required for an appeal. The assessment denies relief for costs incurred by the Group in the normal course of developing the assets, and excludes certain contractual and statutory reliefs from capital gains tax that the Group maintains are properly allowable. The appeal will be heard by the Tax Appeals Tribunal in Kampala later in the year. On the advice of leading counsel, the Group believes that it has a strong case under both international and Ugandan law and currently views the most probable outcome to be that any liability will be at a similar level to the amount already paid on account. The amount of $142m is included in the Group's tax charge for the period ended 30 June 2012.

11. Non-current other receivables

At 30 June 2012 the non-current other receivables balances consists of $341 million of contingent consideration receivable from the Uganda farm-down (note 8) and the recoverable security paid by Tullow to the Ugandan Revenue Authority (URA) as agent to the transaction between Tullow and Heritage Oil & Gas Limited (Heritage) in respect of the sale of their interest in Uganda. Separately, and under the terms of Tullow and Heritage's PSA, Tullow has opened proceedings against Heritage in London to recover this sum