Ghana has secured a major victory in its tax dispute with Tullow Ghana Limited after an international arbitral tribunal dismissed all claims brought by the oil producer over the taxation of business interruption insurance proceeds.
An arbitral tribunal constituted under the Rules of Arbitration of the International Chamber of Commerce (ICC) delivered its award on Tuesday, September 29, 2026, ruling in favour of Ghana.
According to the Ministry of Finance, the tribunal upheld in full a tax assessment of US$393,091,993.70 issued by the Ghana Revenue Authority (GRA) against Tullow Ghana Limited.
The decision brings to a close the arbitration proceedings in which Tullow challenged the basis and enforcement of the tax assessment relating to proceeds from business interruption insurance.
In a statement issued on Wednesday, September 30, 2026, Finance Minister Dr Cassiel Ato Forson said the tribunal rejected all the claims advanced by Tullow.
The tribunal, according to the Ministry, determined that the GRA’s assessment did not breach the applicable Petroleum Agreements between Ghana and Tullow.
It further held that the penalty imposed by the tax authorities was properly applied and that the assessment was not time-barred.
The tribunal also found that the enforcement action taken by the GRA was lawful.
The Ministry said the ruling therefore fully vindicates the position maintained by the Ghanaian authorities throughout the dispute.
Dr Ato Forson acknowledged the contributions of the Office of the Attorney-General, the GRA and Ghana’s external legal counsel, Foley Hoag LLP, in defending the interests of the Republic during the arbitration.
He said the outcome reinforces the principle that companies operating in Ghana are subject to the country’s laws, irrespective of their size or commercial significance.
“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,” the Minister stated.
Despite the tribunal proceedings, the government disclosed that it had been engaged in discussions with Tullow before the award was delivered in an attempt to resolve outstanding tax matters amicably.
The Ministry said those discussions would continue, covering both the matter determined by the tribunal and a separate dispute concerning the disallowance of loan interest.
It stressed that the discussions remain ongoing and are intended to achieve a resolution that serves the mutual interests of both parties.
The government’s approach following the ruling is expected to balance the recovery of the assessed tax liability with the continued operations of Tullow in Ghana.
The Ministry described Tullow as a vital partner to the country and Ghana’s largest petroleum producer, noting that its operations in the Jubilee and TEN oil fields contribute to the country’s energy security, domestic gas supply and the livelihoods of thousands of Ghanaians.
It said the government considers the continued relationship with Tullow to be in the national interest.
“The government will therefore work closely with Tullow to give effect to the award in accordance with Ghanaian law,” the statement said.
It added that, in implementing the award, the government would take into consideration the continuity of operations in the Jubilee and TEN fields as well as Tullow’s capacity to maintain the investments required to sustain those assets.
The Ministry further noted that Ghana’s laws give the GRA the authority to determine the time and manner in which assessed tax liabilities are settled.
The government said it intends to ensure that the award results in the recovery of revenues due to the Ghanaian people while preserving Tullow’s ability to remain operational and continue investing in Ghana.
The ruling comes at a critical period for Ghana’s upstream petroleum sector, with the Government and the Jubilee partners seeking to maximise the prospects of the Jubilee and TEN fields.
The Finance Ministry said the government remains committed to protecting the country’s fiscal interests while ensuring that the petroleum sector continues to contribute to economic activity, energy security and employment.
The award, signed off by Dr Cassiel Ato Forson, Minister for Finance, represents a significant development in the long-running tax dispute between the Republic of Ghana and Tullow Ghana Limited.
By 1960news.com
