Finance Minister Dr Cassiel Ato Forson says the government will secure tax revenues owed by Tullow Ghana Limited following Ghana’s victory in an international arbitration, while safeguarding the company’s ability to continue operating and investing in the country.
A tribunal constituted under the International Chamber of Commerce Rules of Arbitration dismissed all claims brought by Tullow over the taxation of business interruption insurance proceeds and upheld the Ghana Revenue Authority’s assessment of US$393,091,993.70.
In a statement issued on Wednesday, September 30, Dr Forson described Tullow as “a vital partner to Ghana” and the country’s largest petroleum producer. He said its operations in the Jubilee and TEN fields support energy security, domestic gas supply and thousands of Ghanaian livelihoods.
“The Government will therefore work closely with Tullow to give effect to the award in accordance with Ghanaian law,” he stated.
“In doing so, the Government will have 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.”
Dr Forson disclosed that the government had been discussing an amicable resolution of outstanding tax matters with Tullow before the tribunal delivered its decision.
He said those engagements would continue, covering both the dispute decided by the tribunal and separate proceedings relating to the disallowance of loan interest.
The minister stressed that implementation of the award would balance revenue recovery with the company’s continued viability.
“The Government intends to ensure that 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,” he said.
