Tullow Oil has expressed disappointment with an International Chamber of Commerce tribunal’s ruling on a US$196.5 million corporate income tax assessment relating to its Ghana operations from 2016 to 2019.
In a notice to investors and shareholders, the company said it would engage further with the Government of Ghana before deciding its next course of action.
“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 stated.
It added that it would update the market on its plans in due course.
The assessment concerns proceeds Tullow received under its corporate Business Interruption Insurance Policy during the period.
According to the company, the tribunal found that the Ghana Revenue Authority’s tax assessment did not breach Ghana’s Petroleum Agreements. It also ruled that the imposition of penalties of 100 per cent fell outside the scope of the contractual protections provided by Tullow’s Petroleum Agreements.
