Tullow, Backed By Oil Magnate Dossou-aworet, Wins 320 Million Tax Dispute In Ghana

Tullow Oil Plc, a London-headquartered multinational oil and gas exploration company in which Gabonese oil magnate Samuel Dossou-Aworet holds a significant stake, has secured a major victory in a tax arbitration case.

An international tribunal ruled that the company is not liable for a 320 million tax assessment levied by the Ghana Revenue Authority. The ruling pertains to Tullow's operations under the Deepwater Tano and West Cape Three Points Petroleum Agreements, which include Ghana's key Jubilee and TEN oil fields.

In a press release on Thursday, Jan. 2 , Tullow disclosed that the International Chamber of Commerce ICC Tribunal determined that the Branch Profit Remittance Tax BPRT does not apply to Tullow Ghana. The Tribunal affirmed that BPRT falls outside the tax regime outlined in the Petroleum Agreements.

This outcome absolves Tullow Ghana from the 320 million assessment and removes future exposure to similar claims under these agreements. Tullow continues to engage with the Ghanaian government on two remaining tax disputes, which were referred to the ICC in February 2023, with the aim of reaching mutually acceptable resolutions.

Commenting on the decision, Tullow Chief Executive Officer Rahul Dhir said: 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.