Tullow Oil plc said it was not liable to pay $320 million tax on its offshore Ghana petroleum agreements following today’s ruling from the International Chamber of Commerce.
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The amount relates to the branch profit remittance tax (BPRT) under the Deepwater Tano and West Cape Three Points petroleum agreements, which include the Jubilee and TEN fields.
The ICC tribunal determined that BPRT, issued by the Ghana Revenue Authority, fell outside of the tax regime under the provisions of the agreements, said Tullow.
The company will also have no future exposure to BPRT in respect of its operations under the agreements.
Tullow added it continued to engage with the Ghanaian government on two further disputed tax claims, totalling $387m, referred to the ICC in February 2023.
“We are delighted with the outcome and decision of the Tribunal, which affirms our assessment and removes a material overhang from our business,” said outgoing chief executive Rahul Dhir.
“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.
“I look forward to constructive discussions with the Government of Ghana to resolve the remaining claims so that our collective focus remains on maximising value from the Jubilee and TEN fields.”