TGS Hit with USD 39 Mln Government Compensation Claim
TGS has been notified by the Norwegian Government of a compensation claim worth up to NOK 326 million (USD 39 million).
According to the TGS’ statement, the claim is for the Government’s alleged tax losses arising from tax benefits received by Skeie Energy AS (later known as E&P Holding AS) in connection with a sale of seismic data in 2009 from TGS to Skeie Energy.
The Government stated that TGS has aided and abetted Skeie Energy in attaining undue tax advantages.
In the same notification, the Government also requests an extension of the statute of limitations for three years, TGS noted.
“TGS denies any wrongdoing and maintains its position that it is not liable for the claims. TGS views the sale of seismic data to Skeie Energy as a legitimate transaction between two independent companies, involving a sale of high quality seismic data at market prices. TGS was also advised by third party legal and financial experts in relation to the transaction. TGS received no tax benefits from the sale of the seismic data,” the company said.