Tullow Oil PLC has secured a favorable ruling in its tax dispute with the Ghana Revenue Authority (GRA).
The International Chamber of Commerce (ICC) Tribunal determined that the Branch Profit Remittance Tax (BPRT) does not pertain to Tullow Ghana’s operations under the Deepwater Tano and West Cape Three Points Petroleum Agreements, which encompass the Jubilee and TEN offshore oil fields.
This verdict exempts Tullow Ghana from the GRA’s $320 million BPRT assessment and ensures the company will not encounter future BPRT liabilities related to these agreements.
Tullow had contended that the Petroleum Agreements’ tax framework governed its operations, a stance now validated by the Tribunal’s decision.
CEO Rahul Dhir expressed satisfaction with the outcome, stating, “We are delighted with the outcome and decision of the Tribunal, which affirms our assessment and removes a material overhang from our business. We have continuously had confidence in the sanctity of our Petroleum Agreements and the dispute resolution process, which has now brought certainty to all parties.”
Despite this resolution, Tullow remains engaged in discussions with the Government of Ghana to address two additional tax disputes referred to the ICC in early 2023. The company is committed to resolving these matters amicably and focusing on maximizing value from the Jubilee and TEN fields, which are vital assets in Ghana’s oil and gas sector.
