TULLOW OIL SECURES LEGAL WIN IN $320M TAX DISPUTE WITH GHANA REVENUE AUTHORITY
Tullow Oil PLC has secured a major legal victory in its tax dispute with the Ghana Revenue Authority (GRA).
The International Chamber of Commerce (ICC) Tribunal has ruled that the Branch Profit Remittance Tax (BPRT) is not applicable to Tullow Ghana’s operations under the Deepwater Tano and West Cape Three Points Petroleum Agreements, which govern the Jubilee and TEN offshore oil fields.
This ruling exempts Tullow Ghana from the GRA’s $320 million BPRT assessment and protects the company from future BPRT liabilities for its activities under these agreements.
The decision reinforces the tax framework established in the Petroleum Agreements, which Tullow argued was the regulatory regime governing its operations.
“As a result of the Tribunal’s award, Tullow Ghana is not liable to pay the $320 million BPRT assessment issued by the Ghana Revenue Authority and will have no future exposure to BPRT in respect of its operations under the Petroleum Agreements.
“Tullow continues to engage with the Government of Ghana on two further disputed tax claims, which were referred to the ICC in February 2023, with the aim of resolving these disputes on a mutually acceptable basis”, the company said in a press release.
Tullow CEO Rahul Dhir expressed satisfaction with the decision, stating, “we are delighted with the outcome and decision of the Tribunal, which affirms our assessment and removes a material overhang from our business.
“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.”
Despite the recent legal victory, Tullow continues to engage with the Government of Ghana over two other tax disputes that were escalated to the ICC in early 2023.
The company has reiterated its commitment to resolving these matters amicably while concentrating on maximizing value from the Jubilee and TEN fields, which are pivotal assets in Ghana’s oil and gas industry.
BLACK GOLD BULLETIN...
...where oil minds unite
Source: citinewsroom.com
Comments
Post a Comment