Tullow Oil disappointed as ICC tribunal upholds Ghana’s tax assessment

Finance Minister Dr Cassiel Ato Forson has announced that Ghana will secure the tax revenues owed to the country following its victory in an international tax arbitration involving Tullow Ghana Limited. The arbitration, conducted by the International Chamber of Commerce Rules, dismissed Tullow's claims over the taxation of business interruption insurance proceeds and confirmed the Ghana Revenue Authority's assessment of US$393,091,993.70 in taxes.

Recognizing Tullow's crucial role in Ghana's petroleum industry, Dr Forson described the company as "a vital partner to Ghana" and the nation's largest petroleum producer. The company plays a significant role in energy security, domestic gas supply, and the livelihoods of thousands of Ghanaians through its operations in the Jubilee and TEN fields.

The government, in a press statement on September 30, pledged to collaborate with Tullow to implement the arbitration award in line with Ghanaian law, ensuring the continuity of operations in the affected fields and Tullow's capacity to sustain its investments in Ghana. Dr Forson revealed that discussions had been underway between the government and Tullow prior to the tribunal's decision, with the aim of resolving outstanding tax matters amicably.

These discussions will continue, encompassing both the tribunal's ruling and separate proceedings regarding the disallowance of loan interest.

The Finance Minister emphasized that the government's objective is to implement the award in a manner that guarantees the revenues owed to the Ghanaian populace while preserving Tullow's ability to continue operating and investing in the country as a going concern.