The government of the Falkland Islands says it is to look again at the tax demand it has issued oil developer Rockhopper over the Sea Lion field.
The oil developer revealed yesterday it been hit with a £195million tax liability by the Islands over its farm-out deal with Premier Oil for the field.
The company had originally submitted returns for a £51million liability.
Now the Falkland Islands government said it was to review the huge bill issued to Rockhopper over the £3.3billion, 400million barrel site.
“Given the extraordinary circumstances surrounding Rockhopper’s application to the High Court to cancel its share premium account, an initial tax assessment was raised by the Falkland Islands Government Tax Office on 11th June prior to agreement of the tax liability,” the tax office said in a statement.
“The Falkland Islands Government is working with an international specialist valuation advisor and is confident that a mutually acceptable outcome can be reached with Rockhopper.”
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