The international court’s ruling on the $387 million tax dispute between Tullow Oil and the Ghana Revenue Authority (GRA) is expected in November this year.
This decision comes as Tullow Oil’s profit before tax from its Ghanaian operations surged to $411 million, with the company paying $144 million in taxes for the first half of 2024.
Tullow Oil remains confident that the court will rule in its favor, firmly maintaining that it does not owe the disputed amount.
The Chief Finance Officer of Tullow Oil, Richard Miller, disclosed that the case will be decided in November.
“We should get the results of the Ghana arbitration no later than somewhere in November.”
He further added that “there’s a range of possible outcomes, obviously the one that we expect is that we will be successful, and nothing will be owed”.
In February 2023, Tullow Oil plc (Tullow) announced that Tullow Ghana Limited (TGL) has filed requests for arbitration with the International Chamber of Commerce in London in respect of two disputed tax assessments received from the Ghana Revenue Authority (GRA).
The assessments relate to the disallowance of loan interest deductions for the fiscal years 2010 – 2020 and proceeds received by Tullow Oil plc under Tullow’s corporate Business Interruption Insurance policy.
Tullow considers that the two disputed tax assessments, which total $387 million plus penalties, breach TGL’s rights under its Petroleum Agreements. Tullow’s decision to file for arbitration on these matters does not result in any change to the overall exposure previously disclosed.
Tullow believes that resolution through international arbitration will bring certainty, which is in the best interest of all stakeholders.
