Capricorn Energy plc said it would defend its position against tax notice relating to a product sharing contract over the Sangomar oil field, offshore Senegal.
TRANSFER
In 2020 Woodside Energy acquired the entire interest in the project belonging to the company, then known as Cairn Energy.
Woodside received notice from the Senegalese Tax Authority that Capricorn should have paid registration duty of $28.2m including interest and penalties on the transfer to Woodside.
Additionally, Woodside should have withheld Senegalese real estate capital gains tax of $14.5m including interest and penalties from the price paid to Capricorn for the sale.
Capricorn today said that under the terms of the sale agreement with Woodside, it was responsible for any registration duty and any capital gains tax arising in connection with the sale.
“Capricorn’s analysis remains that no Senegalese registration duty or capital gains tax is payable, based on analysis at the time of the transaction.
“Capricorn will continue to vigorously defend its position on this matter including exercising rights under the sale agreement to participate in the defence of any such claim.”