The Government of Ghana has won a major tax arbitration case against Tullow Ghana Limited involving over 393 million US dollars.
This is contained in a statement issued by the Minister for Finance, Dr. Cassiel Ato Forson.
According to the Minister, an arbitral tribunal constituted under the Rules of Arbitration of the International Chamber of Commerce yesterday delivered its award in proceedings brought against the Republic by Tullow over the taxation of business interruption insurance proceeds.
He said the Tribunal ruled in favour of Ghana, dismissed all claims brought by Tullow and upheld in full the Ghana Revenue Authority’s tax assessment of US$393,091,993.70.
“The Tribunal found that the assessment did not breach the Petroleum Agreements, the penalty was properly applied, the assessment was not time-barred, and the Ghana Revenue Authority’s enforcement action was lawful,” the statement said.
Dr. Forson acknowledged the work of the Office of the Attorney-General, the Ghana Revenue Authority and Ghana’s external legal counsel, Foley Hoag LLP, in defending the interests of the Republic.
“This outcome vindicates the position Ghana has maintained throughout: that every company operating in this country, regardless of its size, is subject to the laws of Ghana,” he said.
The Finance Minister noted that the award has come at a critical time when Ghana and the Jubilee partners are working to maximize the prospects of the Jubilee and TEN Fields.
He disclosed that government, prior to the award, was in discussions with Tullow to resolve amicably the outstanding tax matters between the parties, adding that the discussions will continue covering both the matter determined by the Tribunal and the separate proceedings concerning the disallowance of loan interest.
Dr. Forson stressed that Tullow remains a vital partner to Ghana and is the country’s largest petroleum producer whose operations in the Jubilee and TEN fields support Ghana’s energy security, domestic gas supply and thousands of Ghanaian livelihoods.
“It is in the national interest that this relationship endures. The Government will therefore work closely with Tullow to give effect to the award in accordance with Ghanaian law,” he stated.
He assured that government will implement the award in a way that secures the revenues due to the Ghanaian people while preserving Tullow’s ability to continue operating and investing in Ghana as a going concern.

