An international arbitral tribunal has ruled decisively in favour of Ghana in a high-stakes tax dispute with Tullow Ghana Limited, dismissing all of the company’s claims and upholding a Ghana Revenue Authority assessment.
The tribunal, constituted under the Rules of Arbitration of the International Chamber of Commerce, delivered its award yesterday in proceedings brought by Tullow over the taxation of business interruption insurance proceeds.
“The Tribunal ruled in favour of Ghana. It dismissed all claims brought by Tullow and upheld in full the Ghana Revenue Authority’s tax assessment of US$393,091,993.70,” the Ministry of Finance stated in a press release issued on Wednesday.
The tribunal found that the assessment did not breach the Petroleum Agreements, that the penalty was properly applied, that the assessment was not time-barred, and that the Ghana Revenue Authority’s enforcement action was lawful.
Finance Minister Dr Cassiel Ato Forson said the outcome “vindicates the position Ghana has maintained throughout: that every company operating in this country, regardless of its size, is subject to the laws of Ghana.”
The government noted that the award comes “at a critical time when Ghana and the Jubilee partners are working to maximize the prospects of the Jubilee and Ten Fields.”
The government said it will now “work closely with Tullow to give effect to the award in accordance with Ghanaian law,” while having “due regard to the continuity of operations in the Jubilee and TEN fields and Tullow’s capacity to sustain the investments required in those fields.”
Ghana’s laws give the Ghana Revenue Authority the means to determine how assessed liabilities are met. The government intends to ensure the award is implemented “in a way that secures the revenues due to the Ghanaian people while preserving Tullow’s ability to continue operating and investing in Ghana as a going concern.”
Tullow Responds
In a notice to investors and shareholders, Tullow Oil described the decision as disappointing.
“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. It added that it will, in due course, update the market on its next line of action.
Tullow said it is aware of the International Chamber of Commerce ruling that has made an award of US$196.5 million in Corporate Tax Assessment relating to “proceeds received by Tullow Oil during its financial operations from 2026 to 2029, under its corporate Business Interruption Insurance Policy.”
The company acknowledged the tribunal’s finding that the Ghana Revenue Authority’s tax does not breach Ghana’s Petroleum Agreements, and that the assessment of penalties of 100% falls outside the scope of the contractual protections in Tullow’s Petroleum Agreements.
Tullow had taken the matter to the tribunal in London, arguing that the Ghana Revenue Authority’s charge breached the Petroleum Agreement.
