LONDON – Tullow Oil (LON:) PLC announced today a favorable ruling from the International Chamber of Commerce (ICC) regarding a significant tax dispute with the Ghana Revenue Authority. The ICC Tribunal concluded that the Branch Profit Remittance Tax (BPRT) does not apply to Tullow Ghana's operations under the Petroleum Agreements for the Deepwater Tano and West Cape Three Points blocks, which include the notable Jubilee and TEN offshore areas of Ghana.
The Tribunal's decision frees Tullow Ghana from a BPRT assessment of $320 million previously levied by the Ghana Revenue Authority. Additionally, the company will not face BPRT charges in the future for these operations. Tullow Oil has been involved in an extensive dispute with the Ghanaian government over tax claims and aims to resolve the remaining issues amicably.
Rahul Dhir, Tullow's Chief Executive Officer, expressed satisfaction with the Court's decision, saying, “We are pleased with the outcome and decision of the Court, which confirms our assessment and removes excesses from our business.” Dhir emphasized the company's confidence in the Petroleum Agreements and the dispute resolution process, which has now given assurance to all parties involved.
The resolution of this tax dispute is a significant development for Tullow Oil, which allows the company to focus on increasing the value of its operations in Ghana without the burden of reduced taxes. As Tullow continues to negotiate with the Ghanaian government over other disputed tax claims, this recent ruling could set a precedent for the outcome of the negotiations.
The information in this article is based on a press release from Tullow Oil PLC. The company, listed on both the London and Ghanaian stock exchanges under the ticker symbol LSE:TLW, is an independent energy company focused on responsible oil and gas development in Africa. Tullow is committed to achieving Net Zero in its Tier 1 and Tier 2 emissions by 2030 and aims to deliver lasting social and economic benefits to its host countries through its Shared Payments strategy.
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