Tullow Oil has celebrated a significant legal victory following the International Chamber of Commerce (ICC) Tribunal’s ruling that the Branch Profit Remittance Tax (BPRT) does not apply to its operations in Ghana’s offshore Jubilee and TEN fields.
This decision comes after Tullow Ghana had been facing a $320 million tax assessment by the Ghana Revenue Authority (GRA).
The Tribunal ruled that BPRT falls outside the tax framework stipulated in Tullow’s Petroleum Agreements with Ghana. As a result, Tullow Ghana is not liable for the tax assessment and will not face future BPRT charges concerning its operations in the Jubilee and TEN fields.
In a statement, Tullow’s CEO Rahul Dhir expressed satisfaction with the outcome, calling the decision a relief for the company and acknowledging the importance of maintaining the integrity of the Petroleum Agreements. He further emphasized Tullow’s ongoing dialogue with the Government of Ghana to resolve two other tax disputes referred to the ICC earlier in 2023. Dhir voiced optimism for a mutually beneficial resolution, highlighting the importance of focusing on the economic potential of the Jubilee and TEN fields.
This ruling marks a crucial turning point for Tullow, providing clarity on its tax obligations and allowing the company to move forward with a clearer path in Ghana, as it continues to work on resolving remaining issues with the government.
