Omanghana
Ghana has won an international arbitration dispute against Tullow Ghana Limited, with an International Chamber of Commerce tribunal dismissing the company’s claims and upholding a US$393.09 million tax assessment by the Ghana Revenue Authority.
The award, delivered on September 29, 2026, concerns business interruption insurance proceeds received by Tullow between 2016 and 2019. The total liability includes approximately US$196.5 million in corporate income tax and a 100 per cent penalty.
The tribunal found that the tax assessment did not violate the company’s Petroleum Agreements with Ghana. It also determined that the penalties fell outside the contractual protections provided under those agreements.
According to Foley Hoag, the international law firm that represented Ghana, the tribunal unanimously rejected Tullow’s claims. It dismissed the company’s argument that assessments for 2016 and 2017 were time-barred and found that the GRA’s January 2023 enforcement action did not breach the relevant provision of the Deepwater Tano Petroleum Agreement.
Tullow expressed disappointment with the decision in a statement issued on September 30. The company said it would consider its next steps following further engagement with the Ghanaian government and provide an update in due course.
The announcement triggered a sharp decline in the company’s London-listed shares. Reuters reported that the stock was down 45.1 per cent at 10.7 pence during Wednesday morning trading, reflecting investor concerns about the financial implications of the ruling.
Finance Minister Dr Cassiel Ato Forson welcomed the outcome and commended the Attorney-General’s Office, the GRA and Ghana’s external legal advisers for defending the state’s position. He said the decision reinforced the principle that companies operating in Ghana must comply with the country’s laws.
The government has indicated that it will work with Tullow to implement the award under Ghanaian law while safeguarding operations and future investment at the Jubilee and TEN oilfields. Its stated aim is to recover revenue owed to the state while preserving the company’s capacity to maintain production.
The ruling does not resolve all outstanding tax disputes between the parties. A separate US$190.5 million assessment concerning loan interest deductions is scheduled for a tribunal hearing in 2027.
Source: Omanghana
