The International Chamber of Commerce Tribunal has ruled that a $196.5 million corporate income tax assessment against Tullow Oil plc does not breach the company’s Petroleum Agreements with Ghana. The decision concerns proceeds received between 2016 and 2019 under Tullow’s Business Interruption insurance policy.
In its ruling, the Tribunal also held that the 100 percent penalties attached to the assessment fall outside the contractual protections in the Petroleum Agreements. The company said it was disappointed by the outcome and will now consider its next steps after further engagement with the Government of Ghana.
“Tullow is disappointed that the Tribunal has come to this decision and will now consider next steps after further engagement with the Government of Ghana,” the company said in a statement. It did not disclose the details of those steps but promised an update in due course.
The arbitration was launched as part of Tullow’s challenge to the tax assessment and its consistency with the Petroleum Agreements. With the Tribunal’s ruling, the focus shifts to the company’s discussions with the government and any subsequent actions it may take.
