LONDON - Tullow Oil (LON:TLW) 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 its Petroleum Agreements for the Deepwater Tano and West Cape Three Points blocks, which include the notable Jubilee and TEN fields offshore Ghana.
The Tribunal's decision exempts Tullow Ghana from a $320 million BPRT assessment previously levied by the Ghana Revenue Authority. Additionally, the company will not face future BPRT liabilities for these operations. Tullow Oil has been engaged in a broader dispute with the Ghanaian government over tax claims and aims to resolve the remaining issues amicably.
Rahul Dhir, Tullow Chief Executive Officer, expressed satisfaction with the Tribunal's decision, stating, "We are delighted with the outcome and decision of the Tribunal, which affirms our assessment and removes a material overhang from our business." Dhir emphasized the company's confidence in its Petroleum Agreements and the dispute resolution process, which has now provided certainty to all parties involved.
The resolution of this tax dispute is a significant development for Tullow Oil, allowing the company to focus on maximizing value from its Ghanaian operations without the burden of the contested tax. As Tullow continues discussions with the Ghanaian government regarding other disputed tax claims, this recent ruling may set a precedent for the outcome of those negotiations.
The information in this article is based on a press release statement from Tullow Oil PLC. The company, which is listed on both the London and Ghanaian stock exchanges under the ticker symbol LSE:TLW, is an independent energy company with a focus on responsible oil and gas development in Africa. Tullow is also committed to achieving Net Zero on its Scope 1 and 2 emissions by 2030 and aims to deliver lasting socio-economic benefits in its host nations through its Shared Prosperity strategy.
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