Tullow Oil has filed a $313 million lawsuit against its partner, British Oil Company, Heritage Oil. The lawsuit has been filed for recovering tax on fields due to Heritage.

"Heritage and (subsidiary) Heritage Oil & Gas Limited (HOGL) believe that the claim has no basis and will vigorously and robustly defend it. Heritage and HOGL have also reserved their other rights against Tullow and against the government of the Republic of Uganda", it said.

This lawsuit was to settle the breach in the contract by Heritage, which refused to reimburse the taxes of Tullow. Tullow on the other hand, paid $313,447,500 extra to the Uganda government for securing the approval.

However, HOGL claimed that they think the whole issue is a misguided affair and they also said that the payment made to the government was without their consent or knowledge. HOGL was to manage any sort of tax dispute with the government alone.

Furthermore, HOGL claimed that any sale in US and US was not taxable under the Uganda law. This was claimed by the tax experts while the contract and the terms and conditions were prepared by both the companies.

HOGL is asking to release $283,447,500.