Ghana has won an international arbitration case against Tullow Ghana Limited, with a tribunal upholding the Ghana Revenue Authority’s tax assessment of US$393,091,993.70 on business interruption insurance proceeds.
The tribunal, constituted under the International Chamber of Commerce’s Rules of Arbitration, dismissed all claims brought by Tullow, according to a statement issued by Finance Minister Dr Cassiel Ato Forson on Wednesday, September 30.
Dr Forson said the tribunal found that the assessment did not breach the Petroleum Agreements and that the penalty had been properly applied. It also ruled that the assessment was not time-barred and that the GRA’s enforcement action was lawful.
“The Tribunal ruled in favour of Ghana,” he said.
He added that 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 Finance Minister commended the Office of the Attorney-General, the GRA and Ghana’s external legal counsel, Foley Hoag LLP, for defending the Republic’s interests.
He said the government would implement the award in accordance with Ghanaian law while maintaining Tullow’s capacity to continue operating and investing in the Jubilee and TEN oilfields.
