An International Chamber of Commerce (ICC) arbitral tribunal has ruled in favour of the Republic of Ghana, dismissing all claims brought by Tullow Ghana Limited over the taxation of business interruption insurance proceeds.
The tribunal upheld in full the Ghana Revenue Authority’s (GRA) tax assessment of US$393,091,993.70 against the oil giant.
In its decision, the tribunal found that the GRA’s tax assessment did not breach existing Petroleum Agreements, confirming that penalties were properly applied, the assessment was not time-barred, and all enforcement actions taken by tax authorities were lawful.
Reacting to the ruling in an official press release, Minister for Finance Dr Cassiel Ato Forson stated that the outcome validates the country’s firm regulatory stance.
“This 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,” Dr Forson noted.
The Minister acknowledged the legal efforts of the Office of the Attorney-General, the GRA, and external legal counsel Foley Hoag LLP in securing the victory.
Despite the tribunal’s ruling, the Ministry of Finance clarified that government had already been in amicable discussions with Tullow prior to the award to resolve outstanding tax matters, including separate proceedings concerning the disallowance of loan interest.
Dr Forson emphasized that Tullow remains a vital partner as the nation’s largest petroleum producer, supporting energy security, domestic gas supply, and thousands of local jobs.
He assured that the government will work closely with Tullow to implement the award while safeguarding the company’s operational continuity.
“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,” the statement concluded.
