Ghana: Tullow Oil Ghana provides Ghana tax arbitration update
Tullow Oil has lost an arbitration case against the Government of Ghana regarding a $196.5 million corporate income tax assessment. The International Chamber of Commerce ruled that the tax assessment and associated penalties do not violate the company's existing petroleum agreements.
Why it matters
The ruling impacts the financial outlook for Tullow Oil and sets a precedent for how tax disputes are handled within Ghana's energy sector.
Tullow Oil notes that the International Chamber of Commerce (ICC) has delivered the Tribunal's award with regard to the $196.5 million corporate income tax assessment relating to proceeds received by Tullow during the financial years 2016 to 2019 under Tullow's corporate Business Interruption insurance policy, ruling that the assessment is not in breach of Tullow's Petroleum Agreements . The Tribunal has also ruled that the assessment of penalties of 100%, fall outside the scope of the contractual protections in Tullow's Petroleum Agreements.
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