LONDON – Tule oil (LON:) PLC has today announced a favorable ruling by the International Chamber of Commerce (ICC) in relation to a significant tax dispute with the Ghana Revenue Authority. The ICC Tribunal has ruled that Branch Profits Remittance Tax (BPRT) does not apply to Tullow Ghana’s operations under its oil agreements for the Deepwater Tano and West Cape Three Points blocks, which include the significant Jubilee and TEN fields in Ghana.
The Tribunal’s decision exempts Tullow Ghana from a BPRT assessment of $320 million previously levied by the Ghana Revenue Authority. In addition, the company will not face future BPRT liabilities for these operations. Tullow Oil is involved in a wider dispute with the government of Ghana over tax claims and is seeking to resolve the remaining issues amicably.
Rahul Dhir, Chief Executive Officer of Tullow, expressed satisfaction with the Tribunal’s decision, saying: “We are delighted with the outcome and the Tribunal’s decision, which confirms our assessment and removes a material disruption from our business.” Dhir emphasized the company’s confidence in its oil contracts and dispute resolution process, which has now provided certainty to all parties involved.
The resolution of this tax dispute is a significant development for Tullow Oil, allowing the company to focus on maximizing the value of its operations in Ghana without the burden of the disputed tax. While Tullow continues to negotiate with the Ghanaian government regarding other disputed tax claims, this recent ruling could set a precedent for the outcome of those negotiations.
The information in this article is based on a press release from Tullow Oil PLC. The company, which is listed on the London and Ghana stock exchanges under the symbol LSE:TLW, is an independent energy company with a focus on responsible oil and gas development in Africa. Tullow is also committed to achieving net zero Scope 1 and 2 emissions by 2030 and aims to deliver lasting socio-economic benefits in its host countries through its shared prosperity strategy.
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