Ghana Revenue Authority to resolve Tullow’s $393 million tax liability without disrupting operations

The Ghana Revenue Authority (GRA) has pledged to collaborate with Tullow Oil Ghana to settle a substantial tax debt of $393 million without disrupting the company's oil operations. This assurance was made by GRA Commissioner-General Anthony Kwasi Sarpong during a recent interview, following an international tribunal's decision that validated GRA's tax assessment against the company.

Sarpong emphasized that the GRA regards Tullow as a crucial partner within Ghana's petroleum industry and intends to resolve the outstanding liability amicably alongside other pertinent stakeholders. The $393 million figure encompasses tax liabilities, penalties, and accrued interest.

Sarpong further stated that the GRA aims to recover the outstanding debt without causing any disruption to Tullow's petroleum operations in Ghana. This assurance comes in the wake of the tribunal's affirmation of the GRA's tax assessment against Tullow, following the company's appeal under Ghana's petroleum revenue framework. The GRA maintains that the recovery of the outstanding liability should be conducted in a manner that does not interfere with Tullow's petroleum activities in the country.

Tullow Oil expressed disappointment with the International Chamber of Commerce's ruling in London, which upheld a $196.5 million corporate income tax assessment for the company's operations in Ghana from 2016 to 2019. The ruling prompted Tullow to evaluate its subsequent actions after discussing with the Ghanaian government. Consequently, this development moves the story from the tribunal's decision to the next phase of settling the outstanding tax liability while maintaining Tullow's petroleum operations in Ghana.