Tullow Oil plc Annual Report 2011 - The Group

Notes to the Group financial statements continuedYear ended 31 December 2011Note 14. Trade receivablesTrade receivables comprise amounts due for the sale of oil and gas. No receivables have been impaired and no allowancefor doubtful debt has been recognised (2010: $nil, 2009: $nil).Note 15. Inventories2011$m*Restated2010$m*Restated2009$mWarehouse stocks and materials 132.0 118.6 93.4Oil stocks 93.7 64.4 33.7225.7 183.0 127.1* Certain numbers shown above do not correspond to the 2010 and 2009 financial statements as a result of a retrospective restatement as set out in note 1.Inventories includes a provision of $3.8 million (2010: $3.8 million, 2009: $3.8 million) for warehouse stock and materials where itis considered that the net realisable value is lower than the original cost.Note 16. Other assetsNon-currentOther debtors 313.5 – –CurrentOther debtors 266.7 604.4 232.1Prepayments 56.1 12.5 45.9VAT recoverable 37.4 38.4 18.02011$m2010$m2009$m360.2 655.3 296.0In March 2011, Tullow was designated by the Ugandan Revenue Authority (URA) as agent to the transaction between Tullow andHeritage Oil & Gas Limited (“Heritage”) in respect of the sale of their interests in Uganda. This designation required Tullow to paya recoverable security of $313.5 million to the URA. This sum is equivalent to the outstanding Capital Gains Tax that the UgandanGovernment believes it is owed by Heritage. Separately, and under the terms of Tullow and Heritage’s PSA, Tullow has openedproceedings against Heritage in London to recover this sum. The case is expected to be heard in early 2013 after other casesinvolving Heritage in London and Kampala have been concluded.Included within other debtors are amounts due from joint venture partners of $204.9 million (2010: $58.0 million, 2009:$120.4 million), advances to contractors for the Jubilee FPSO $nil (2010: $433.2 million, 2009: $80.4 million), deferred expensesof $0.8 million (2010: $2.8 million, 2009: $9.6 million) and other sundry debtors of $61.0 million (2010: $110.4 million, 2009:$21.7 million).Note 17. Cash and cash equivalentsCash at bank and in hand 307.1 338.3 241.2Short-term deposits – – 11.02011$m2010$m2009$m307.1 338.3 252.2Cash and cash equivalents includes an amount of $nil (2010: $nil, 2009: $2.4 million) which is a reserve held on fixed termdeposit in support of a Letter of Credit facility which relates to the Group’s share of certain decommissioning costs and anamount of $221.3 million (2010: $279.0 million, 2009: $152.9 million) which the Group holds as operator in joint venturebank accounts.138Tullow Oil plc 2011 Annual Report and Accounts