By Ashiadey Dotse
Tullow Oil says it is disappointed with a ruling by the International Chamber of Commerce (ICC) in London concerning a US$196.5 million corporate tax assessment on its operations in Ghana.
The tribunal has ruled that the tax assessment by the Ghana Revenue Authority (GRA) does not violate the petroleum agreements between Tullow and the Government of Ghana.
The case relates to proceeds received by Tullow under a Business Interruption Insurance Policy during the 2016 to 2019 period.
In a statement to investors and shareholders, Tullow Oil said it would now engage the Government of Ghana before deciding on its next steps.
“Tullow is disappointed that the Tribunal has come to this decision and will now consider next steps after further engagement with the Government of Ghana,” the company said.
The ICC also ruled that the 100% penalties imposed on Tullow fall outside the contractual protections provided under the company’s petroleum agreements with Ghana.
Tullow said it would provide an update to the market on its next course of action after completing its further engagement with the government.
The ruling brings a major development to the long-running tax dispute between the oil company and Ghanaian tax authorities.
